Diodes Profit Up, But Miss Estimates - Update

(RTTNews) - Semiconductor-related products maker Diodes Inc. (DIOD), Tuesday reported a higher third-quarter profit as revenue surged, partly on the strength of the TV market, and margins expansion.

Nonetheless, earnings for the quarter missed Wall Street estimates by a penny and revenue fell shy of expectations, somewhat reflecting weakness in the PC market. The company provided a weak guidance for the fourth quarter, due mainly to a slump in the PC market.

Diodes makes products that serve consumer electronics, computing, communications, industrial, and automotive markets.

The Plano, Texas-based company reported third-quarter net income to common stockholders of $13.6 million or $0.28 per share, compared with $8.6 million or $0.18 per share last year.

Excluding items, adjusted earnings for the quarter were $15.8 million or $0.33 per share, compared with $9.5 million or $0.20 per share in the prior year. On average, 9 analysts polled by Thomson Reuters estimated earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed 34.7 percent to $224.5 million from $166.6 million last year. Analysts estimated revenue of $225.50 million.

"Our past design win momentum and strength in the TV market and at certain major OEM customers were able to offset the continued weakness in the PC market," said CEO Keh-Shew Lu.

Gross margin for the quarter improved to 31 percent 26.2 percent a year ago.

For the fourth quarter, Diodes expect revenue of $205 million to $220 million, or down 2 to 9 percent sequentially. Analysts currently expect revenue of $222.21 million for the quarter.

DIOD closed Tuesday at $22.17, down $0.47 or 2.08%, on the Nasdaq. In after hours, the stock dropped $0.59 or 2.66% at $21.58.