Reports Q2 revenue $366.2M, consensus $352.1M. Commenting on the results, Gary Yu, CEO of Diodes (DIOD), stated, “Our above expected revenue results represent our third consecutive quarter of year-over-year growth, indicating the ongoing improvement in market conditions and demand. Point of sales (POS) increased sequentially across all regions with double-digit growth in Asia. The increasing demand in the quarter also contributed to channel inventory being reduced further with both channel and internal inventory days decreasing. While we continue to see positive signs of a broader market recovery, our consumer end market experienced the strongest growth during the quarter, contributing to less favorable product mix combined with our higher-margin automotive and industrial markets remaining effectively flat as a percentage of total revenue. Additionally, the channel inventory depletion continues to limit increased loading at our manufacturing facilities, resulting in underloading costs also being a headwind to gross margin expansion. Even when considering these dynamics, we continued to increase gross profit dollars and delivered non-GAAP earnings growth of almost 70% sequentially as we continued to closely manage expenses.” “As we look to the third quarter, we expect to extend our strong growth momentum with revenue anticipated to increase 7% sequentially and 12% year-over-year at the mid-point, mainly driven by strong demand in Asia for AI-related computing applications, consumer and increasing demand in the EV automotive market in China.”
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