The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diodes missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Diodes recorded revenue of $160.6 million. The 12 analysts polled by S&P Capital IQ expected to see a top line of $164.3 million. GAAP sales were 12% lower than the prior-year quarter's $163.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.26. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS of $0.07 for Q3 were 87% lower than the prior-year quarter's $0.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.8%, 1,350 basis points worse than the prior-year quarter. Operating margin was 3.4%, 1,630 basis points worse than the prior-year quarter. Net margin was 2.2%, 1,240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $145.2 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $637.2 million. The average EPS estimate is $1.25.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 223 members out of 238 rating the stock outperform, and 15 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Diodes a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Diodes is outperform, with an average price target of $24.45.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.