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Diodes (DIOD) to Report Q3 Earnings: What's in the Cards?

Diodes' (DIOD) third-quarter results are likely to benefit from robust adoption of its products in the automotive, industrial, communications and computing end-markets.

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This story originally appeared on Zacks

Diodes DIOD is set to release third-quarter 2021 results on Nov 3.

For the quarter, the company expects revenues of $467 million (+/-3%). The Zacks Consensus Estimate for revenues is pegged at $467.6 million, suggesting an improvement of 51.1% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at $1.38 per share, unchanged over the past 30 days and indicating growth of 122.6% from the figure reported in the year-ago quarter.

Diodes’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 10.1%, on average.

 

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Diodes Incorporated Price and EPS Surprise

Diodes Incorporated Price and EPS Surprise

Diodes Incorporated price-eps-surprise | Diodes Incorporated Quote

 

Let’s see how things have shaped up for Diodes prior to this announcement:

Factors to Consider

Diodes’ strong portfolio of products has positioned it well to capitalize on high-growth areas like IoT, home automation, smart infrastructure, smartphones, 5G, cloud computing, server, storage, data centers, connected cars, embedded systems and precision controls. This is expected to have contributed to the company’s growth in the third quarter.

Recovery in the automotive market bodes well for Diodes despite supply chain constraints. Infotainment & Telematics, Body Control Electronics, Power Train, Advanced Driver Assistance Systems, Interior and Exterior Lighting, and Motor Control are some of the areas the company is expanding its footprint in. This is expected to have driven Diodes’ top-line growth in the to-be-reported quarter.

Increasing IC content in embedded systems is expected to boost Diodes’ industrial top-line growth. Strong demand for the company’s Pericom product for high-end PCs, servers and data center applications is likely to have aided top-line growth as well.

Synergies from the acquisition of LITE-ON Semiconductor are expected to have benefited Diodes’ revenues in the to-be-reported quarter.

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 carries 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 you may want to consider, as our model shows that thesehave the right combination of elements to post an earnings beat in their upcoming releases:

Applied Materials AMAT has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics SYNA has an Earnings ESP of +0.38% and a Zacks Rank #2.

PerkinElmer PKI has an Earnings ESP of +5.20% and a Zacks Rank #2.



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PerkinElmer, Inc. (PKI): Free Stock Analysis Report

 

Applied Materials, Inc. (AMAT): Free Stock Analysis Report

 

Diodes Incorporated (DIOD): Free Stock Analysis Report

 

Synaptics Incorporated (SYNA): Free Stock Analysis Report

 

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