Diodes Inc Third Quarter Earnings Sneak Peek

Diodes Incorporated (NASDAQ:DIOD) will unveil its latest earnings on Thursday, November 8, 2012. Diodes is a designer, manufacturer, and supplier of high-quality, application specific standard products within the discrete and analog semiconductor markets, in the consumer electronics, computing, communications, industrial, and automotive markets.

Diodes Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 20 cents per share, a decline of 23.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 20 cents during the last month. Analysts are projecting profit to rise by 48.4% versus last year to 64 cents.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported profit of 14 cents per share versus a mean estimate of 18 cents. Two quarters ago, it reported net income of 9 cents per share.

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A Look Back: In the second quarter, profit fell 63% to $6.7 million (14 cents a share) from $18 million (38 cents a share) the year earlier, missing analyst expectations. Revenue fell 6.2% to $159.2 million from $169.8 million.

Stock Price Performance: Between September 7, 2012 and November 2, 2012, the stock price had fallen $3.82 (-20.1%), from $19 to $15.18. The stock price saw one of its best stretches over the last year between September 10, 2012 and September 14, 2012, when shares rose for five straight days, increasing 5.3% (+98 cents) over that span. It saw one of its worst periods between February 23, 2012 and March 6, 2012 when shares fell for nine straight days, dropping 12.3% (-$3.12) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 3.8% in revenue from the year-earlier quarter to $166.7 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 1.6% in the third quarter of the last fiscal year, 12.5% in fourth quarter of the last fiscal year and 10.5% in the first quarter and then fell again in the second quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 69.6% over the past four quarters.

Analyst Ratings: With four analysts rating the stock as a buy, one rating it as a sell and three rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.27 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.34 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.6% to $114 million while assets rose 1.8% to $486.5 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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