Diodes Incorporated Second Quarter Earnings PREVIEW

Diodes Incorporated (NASDAQ:DIOD) will unveil its latest earnings on Wednesday, August 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 18 cents per share, a decline of 58.1% 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 20 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 18 cents during the last month. Analysts are projecting profit to rise by 27.4% compared to last year’s 90 cents.

Past Earnings Performance: Last quarter, the company met expectations by reporting profit of 9 cents per share last quarter. In the previous fourth quarter of the last fiscal year, the company beat estimates by one cent.

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A Look Back: In the first quarter, profit fell 75.3% to $4.9 million (10 cents a share) from $19.7 million (42 cents a share) the year earlier, meeting analyst expectations. Revenue fell 10.5% to $144.7 million from $161.6 million.

Stock Price Performance: Between May 8, 2012 and August 2, 2012, the stock price fell $2.62 (-12.3%), from $21.34 to $18.72. The stock price saw one of its best stretches over the last year between April 23, 2012 and April 27, 2012, when shares rose for five straight days, increasing 7.3% (+$1.53) 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 are projecting a decline of 6.4% in revenue from the year-earlier quarter to $159 million.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 52.9% in the third quarter of the last fiscal year, by 87% in the fourth quarter of the last fiscal year and again in the first quarter.

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

Analyst Ratings: With five analysts rating the stock as a buy, two 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 4.34 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 improved this liquidity measure from 3.89 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 12% to $477.9 million while liabilities rose by 0.3% to $110 million.

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

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