Diodes Misses Where it Counts

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Diodes (NAS: DIOD) reported earnings on Nov. 8. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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The article Diodes Misses Where it Counts originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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