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Sep 30, 2024
Diodes Q3 2024 Earnings Report
Diodes' Q3 2024 revenue exceeded expectations with sequential growth and double-digit POS growth in Asia, driven by automotive market expansion and design win initiatives.
Key Takeaways
Diodes Incorporated reported a strong third quarter with revenue exceeding expectations, driven by growth in Asia and the automotive market. The company is moderating capital expenditure investments to preserve earnings and cash flow amidst ongoing inventory and demand adjustments in the automotive and industrial markets. For Q4, the company expects revenue to be better than typical seasonality.
Third quarter revenue increased 9.5% sequentially, exceeding expectations, with double-digit POS growth in Asia.
Automotive market revenue increased 18% sequentially, representing 19% of product revenue, driven by content expansion and design win initiatives.
Channel inventory improved in Asia, with sequential decreases in both inventory dollars and days.
For the fourth quarter, revenue is guided to be better than typical seasonality.
Revenue by Geographic Location
Forward Guidance
For the fourth quarter of 2024, Diodes expects revenue to be approximately $337 million, plus or minus 3%. GAAP gross margin is expected to be 33%, plus or minus 1%. Non-GAAP operating expenses are expected to be approximately 28% of revenue, plus or minus 1%.
Positive Outlook
- Revenue expected to be approximately $337 million, plus or minus 3%.
- GAAP gross margin is expected to be 33%, plus or minus 1%.
- Net interest income to be approximately $2.5 million.
- Income tax rate is expected to be 18%, plus or minus 3%.
- Shares used to calculate EPS for the fourth quarter are anticipated to be 46.7 million.
Challenges Ahead
- Sequential decrease expected at the midpoint.
- Gross margin expectation continues to reflect factory under loading related to wafer service agreement and internal demand.
- Automotive market will continue going through some inventory adjustments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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