Diodes (NASDAQ:DIOD) Announces Earnings Results

Diodes (NASDAQ:DIOD) released its quarterly earnings results on Thursday. The semiconductor company reported $1.18 EPS for the quarter, beating analysts’ consensus estimates of $1.05 by $0.13, Zacks reports. Diodes had a return on equity of 4.33% and a net margin of 5.27%. The business had revenue of $532.59 million during the quarter, compared to analyst estimates of $512.94 million. During the same quarter in the prior year, the company posted $0.37 EPS. Diodes’s quarterly revenue was up 35.8% compared to the same quarter last year.

Here are the key takeaways from Diodes’ conference call:

• Diodes reported record third-quarter revenue of $532.6 million, up 36% year over year, while gross margin rose to 36.1% from 30.7%. Non-GAAP adjusted EPS increased to $1.18 from $0.37 a year earlier.
• Management forecast fourth-quarter revenue of about $550 million, plus or minus 3%, with non-GAAP gross margin of 37% and adjusted EPS of $1.35, each at the midpoint. The company expects full-year 2026 revenue to grow approximately 30% at the midpoint.
• Growth was broad-based: automotive revenue reached a record, up nearly 60% year over year, industrial rose 50%, and computing set a quarterly record, supported by AI servers, data centers, and storage. Management also cited gains in consumer and communications applications.
• Management attributed margin improvement to better product mix, pricing, and factory utilization, and said further gains are possible as capacity loads increase. It reiterated a long-term target model of 40% gross margin.
• Supply remains constrained and lead times extended, while channel inventory weeks are below Diodes’ normal range; management said customers are largely buying hand-to-mouth rather than rebuilding inventories. Notebook and PC demand is soft, and China’s smartphone market remains weak.

Diodes Trading Up 11.0%

NASDAQ DIOD opened at $85.89 on Tuesday. Diodes has a 12 month low of $42.28 and a 12 month high of $125.99. The company has a current ratio of 3.17, a quick ratio of 1.99 and a debt-to-equity ratio of 0.01. The stock’s fifty day moving average price is $90.00 and its 200-day moving average price is $88.07. The stock has a market cap of $3.96 billion, a P/E ratio of 34.49 and a beta of 1.96.

Analysts Set New Price Targets

Several analysts recently weighed in on DIOD shares. Wall Street Zen upgraded shares of Diodes from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 24th. Wells Fargo & Company set a $135.00 price objective on shares of Diodes in a report on Tuesday, October 6th. Bank of America initiated coverage on shares of Diodes in a research report on Tuesday, October 6th. They issued a “buy” rating and a $135.00 target price for the company. Robert W. Baird set a $192.00 target price on shares of Diodes in a research note on Thursday, August 6th. Finally, Needham & Company LLC reduced their price target on shares of Diodes from $110.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $129.17.

About Diodes

Diodes Incorporated designs, manufactures and supplies semiconductor products used in electronic systems. Its portfolio includes discrete semiconductors, analog and mixed-signal devices, and power-management products, such as rectifiers, transistors, MOSFETs, protection devices, converters and LED drivers.

The company’s products support applications in automotive, industrial, computing, consumer electronics and communications markets. Diodes serves customers globally through operations and sales across the Americas, Europe and Asia.

Founded in 1959, Diodes Incorporated is headquartered in Plano, Texas.