The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Diodes met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Margins dropped across the board.
Diodes booked revenue of $166.6 million. The 11 analysts polled by S&P Capital IQ foresaw sales of $166.7 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $160.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS of $0.18 for Q3 were 14% lower than the prior-year quarter's $0.21 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 26.2%, 190 basis points worse than the prior-year quarter. Operating margin was 4.5%, 380 basis points worse than the prior-year quarter. Net margin was 5.1%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $166.3 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $637.1 million. The average EPS estimate is $0.69.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 211 members out of 227 rating the stock outperform, and 16 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Diodes a green thumbs-up, and two 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 $23.56.
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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. TMFDisclosureHere