Diodes Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
 For the quarter ended June 30 (Q2), Diodes met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.


Margins contracted across the board.

Revenue details
 Diodes logged revenue of $159.2 million. The 11 analysts polled by S&P Capital IQ anticipated a top line of $159.6 million on the same basis. GAAP reported sales were 6.2% lower than the prior-year quarter's $169.8 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 $0.14. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.14 for Q2 were 63% lower than the prior-year quarter's $0.38 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 25.8%, 700 basis points worse than the prior-year quarter. Operating margin was 4.4%, 1,050 basis points worse than the prior-year quarter. Net margin was 4.2%, 640 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $173.2 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $652.3 million. The average EPS estimate is $0.94.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 215 members out of 231 rating the stock outperform, and 16 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Diodes a green thumbs-up, and three 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 $26.00.

Is Diodes the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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. The Motley Fool has no positions in the stocks mentioned above. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement