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Diodes (DIOD) to Report Q4 Earnings: What's in the Cards?

·4 min read

Diodes DIOD is slated to release fourth-quarter 2021 results on Feb 9.

For the fourth quarter, the company expects revenues of $476 million (+/-3%). The Zacks Consensus Estimate for revenues is pegged at 476.20 million, suggesting an improvement of 35.91% from the year-ago quarter’s reported figure.

The consensus mark for earnings stands at $1.45 per share, unchanged over the past 30 days and indicating growth of 95.95% from the year-ago reported quarter.

Diodes’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.04%.

Diodes Incorporated Price and EPS Surprise

Diodes Incorporated Price and EPS Surprise
Diodes Incorporated Price and EPS Surprise

Diodes Incorporated price-eps-surprise | Diodes Incorporated Quote

Factors to Note

Diodes' fourth-quarter performance is likely to have benefited from high growth markets like the automotive and the semiconductor market. Even among supply chain management issues, Diodes has been increasing loading at its LITE-ON Semiconductor facilities.

Diodes' global manufacturing footprint might have contributed to the to-be-reported quarter's performance. The company’s global manufacturing footprint provides the company capacity to reduce costs, either by adding equipment to existing lines or converting equipment to larger wafers.

These ongoing actions are likely to have supported growth in the fourth quarter and is expected to do so beyond. By the end of 2025, following the strategy to increase global footprint, Diodes intends to achieve long-term target of $1 billion in gross profit by 2025 on $2.5 billion in revenues and 40% gross margin.

Diodes’ expanding portfolio in the automotive market is expected to have helped the company gain traction. This, in turn, is expected to get reflected in the to-be reported quarter's revenues.

Diodes news designs like the in momentum for gate drivers, high-voltage regulators, hall-effect sensors and MOSFET in the brushless DC motors, electric power steering, cooling fans, water pumps, power windows, door locks, infotainment, battery managed systems and advanced driving assistance systems are expected to have helped the company gain new customers. This is likely to have favored the top-line growth.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Diodes has an Earnings ESP of 0.00% and a Zacks Rank #2 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Onto Innovation ONTO has an Earnings ESP of +0.90% and a Zacks Rank #2. The company is scheduled to release fourth-quarter 2021 results on Feb 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

Onto’s shares have gained 49.1% in the past year against the Zacks Nanotechnology industry fall of 68.3%. The Zacks Computer and Technology Sector witnessed a rise of 2.4%.

Mandiant MNDT has an Earnings ESP of +2.50% and a Zacks Rank #1. The company is slated to release fourth-quarter 2021 results on Feb 8.

Mandiant’s shares have tumbled 30.2% in the past year against the Zacks Security and the Zacks Computer and Technology Sector’s rise of 2.4% and 2.4%, respectively.

ACM Research ACMR has an Earnings ESP of +8.62% and a Zacks Rank #1. The company is scheduled to release fourth-quarter 2021 results on Feb 24.

ACM Research’s shares have declined 24.7% in the past year against the Zacks Semiconductor Equipment - Material Services return of 2.5% and the Zacks Computer and Technology sector’s return of 2.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Diodes Incorporated (DIOD) : Free Stock Analysis Report

ACM Research, Inc. (ACMR) : Free Stock Analysis Report

Onto Innovation Inc. (ONTO) : Free Stock Analysis Report

Mandiant, Inc. (MNDT) : Free Stock Analysis Report

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