Himax Technologies Inc. (HIMX) saw its stock price surge 5.35% in pre-market trading on Thursday, following the company's announcement of a cash dividend for fiscal year 2025 and the release of its first quarter 2026 financial results.
The semiconductor company declared a cash dividend of $0.252 per American Depositary Share (ADS), representing a payout ratio of 100% of last year's profit. According to the company's CEO Jordan Wu, this high payout ratio reflects Himax's healthy balance sheet and positive outlook for cash flow generation over the coming years.
Simultaneously, Himax reported improved first-quarter performance with diluted earnings per ADS rising to $0.046 from $0.036 in the previous quarter, despite a slight 2% sequential decline in revenue to $199 million. More importantly, the company provided optimistic guidance for the second quarter, expecting revenue to increase by 10% to 13% sequentially with gross margin improving to approximately 32%.