Diodes (DIOD) Tops Q4 EPS by 7c, Revenues Beat; Offers Q1 Revenue Mid-Point Guidance Above Consensus

• Diodes (NASDAQ: DIOD) reported Q4 EPS of $0.65, $0.07 better than the analyst estimate of $0.58. Revenue for the quarter came in at $314.4 million versus the consensus estimate of $313.57 million.
• Revenue was $314.4 million, an increase of 17.1 percent from the $268.4 million in the fourth quarter 2017 and a decrease of 2.0 percent from the $320.9 million in the third quarter 2018;
• GAAP gross profit was $114.2 million, compared to $96.4 million in the fourth quarter 2017 and $115.2 million in the third quarter 2018;
• GAAP gross profit margin was 36.3 percent, compared to 35.9 percent in the fourth quarter 2017 and 35.9 percent in the third quarter 2018;
• GAAP net income was $29.5 million, or $0.58 per diluted share, compared to a GAAP net loss of ($30.7) million, or ($0.62) per share, in the fourth quarter 2017 and GAAP net income of $30.9 million, or $0.61 per diluted share, in the third quarter 2018;
• Non-GAAP adjusted net income was $33.2 million, or $0.65 per diluted share, compared to $21.6 million, or $0.42 per diluted share, in the fourth quarter 2017 and $34.5 million, or $0.68 per diluted share, in the third quarter 2018;
• Excluding $3.8 million, net of tax, of non-cash share-based compensation expense, both GAAP and non-GAAP earnings per share would have increased by $0.07 per diluted share;
• EBITDA was $70.5 million, or 22.4 percent of revenue, compared to $47.0 million, or 17.5 percent of revenue, in the fourth quarter 2017 and $72.0 million, or 22.4 percent of revenue, in the third quarter 2018; and
• Achieved cash flow from operations of $61.6 million and $46.3 million free cash flow, including $15.3 million of capital expenditures. Net cash flow was a positive $90.7 million, which includes $47.4 million of additional long-term debt to fund a previously committed shareholder equity increase in the Company\'s Chengdu corporate entity.

Dr. Lu further commented, “We expect revenue in the first quarter of 2019 to be approximately $305 million, plus or minus 2.5 percent. At the mid-point, this represents growth of 11 percent over the prior year period and down approximately 3 percent sequentially, which is better than typical seasonality. We expect GAAP gross margin to be 36.3 percent, plus or minus 1 percent. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 21.5 percent of revenue, plus or minus 1 percent. We expect net interest expense to be approximately $2.0 million. Our income tax rate is expected to be 25.0 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 51.2 million.”

GUIDANCE:

Diodes sees Q1 2019 revenue of $305 million, versus the consensus of $299.73 million.

For earnings history and earnings-related data on Diodes (DIOD) click here.

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