Himax Technologies (HIMX) stock dropped 6.61% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results and fourth-quarter guidance. The semiconductor company's performance and outlook fell short of market expectations, triggering a sell-off among investors.

For Q3 2025, Himax reported net revenues of $199.2 million, representing a sequential decline of 7.3% from the previous quarter. While this outperformed the company's earlier guidance of a 12.0% to 17.0% decline, it still marked a significant drop from $222.4 million in the same quarter last year. The company's earnings per diluted ADS came in at just 0.6 cents, down sharply from 7.4 cents a year earlier, though slightly better than the previously guided loss range of 2.0 to 4.0 cents.

Adding to investor concerns, Himax's outlook for Q4 2025 failed to inspire confidence. The company expects revenues to remain flat or slightly up compared to Q3, with projected earnings per diluted ADS in the range of 2.0 to 4.0 cents. This guidance falls significantly short of the 8 cents per share that analysts were anticipating. The company's large display driver segment, a key revenue source, saw a substantial 23.6% quarter-over-quarter decline to $19.0 million, further dampening investor sentiment. Despite management's optimism about the company's automotive business outlook and expansion into areas like ultralow power AI and smart glasses, the market's immediate reaction suggests skepticism about Himax's near-term growth prospects.