Himax Technologies HIMX recently reported preliminary third-quarter 2020 results. The company anticipates revenues to be $239.9 million, indicating sequential growth of 28.3% against guidance of roughly 20% growth which the company issued on Aug 6. Revenues are now expected to jump 46% year over year.Moreover, Himax now projects gross margin to be around 22.3%, which surpasses the company's original guidance range of being flat to slightly down from the 21% reported in the previous quarter.Gross margin is expected to expand 130 basis points (bps) sequentially and 280 bps year over year.Further, earnings on IFRS basis are expected to be roughly 4.9 cents per ADS, much better than previous guidance 2-2.8 cents per ADS range. This reflects growth of 510% sequentially and 217.1% year over year.Himax shares were up 7.8%, to close at $3.73 on Oct 6. The company’s shares have rallied 40.2% in the year-to-date period, outperforming the industry’s return of 31.4%. Himax Technologies, Inc. Price and Consensus Himax Technologies, Inc. price-consensus-chart | Himax Technologies, Inc. Quote Earnings Estimates UnchangedThe Zacks Consensus Estimate for third-quarter earnings currently stands at 4 cents per share, unchanged over the past 30 days, and suggests 200% growth from the figure reported in the year-ago quarter.Notably, the company has beaten the Zacks Consensus Estimate in one of the trailing four quarters, while meeting the same in the other three, with average earnings surprise being 5%.Moreover, the consensus mark for revenues is currently pegged at $224.9 million, indicating growth of 36.9% from the figure reported in the year-ago quarter.Key Factors to Watch in Q3Himax’s third-quarter preliminary results reflect benefits from an improved display driver demand. Notably, the company is a dominant name in TFT LCD display driver and timing-controller IC markets.Solid demand for notebooks due to the coronavirus-led work-from-home and online-learning wave is expected to have benefited Himax’s top-line growth. Robust demand for tablets has also been a key catalyst.Moreover, the company’s diversified customer base and a strong partner ecosystem are likely to have boosted its top line. Himax boasts of more than 200 customers across Taiwan, China, Japan, Korea, the United States and Europe.Zacks Rank & Key PicksHimax currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Aspen Technology AZPN, salesforce.com CRM and Dropbox DBX. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for Aspen Technology, salesforce.com and Dropbox is currently pegged at 15.5%, 18% and 34.2%, respectively. Biggest Tech Breakthrough in a GenerationBe among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.See 8 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report salesforce.com, inc. (CRM): Free Stock Analysis Report Himax Technologies, Inc. (HIMX): Free Stock Analysis Report Aspen Technology, Inc. (AZPN): Free Stock Analysis Report Dropbox, Inc. (DBX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research