On Jul 6, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
This semiconductor stock carries excellent investment
opportunity, given management's decision to raise the lower end
of its second quarter 2013 guidance, solid performance in the
first quarter and expected synergies from the acquisition of BCD
Semiconductor Manufacturing Ltd. (completed on Mar 5). The
stock's return was 50.0% in the past one year. Diodes' shares set
a new 52-week high of $27.47 on Jul 5.
Why the Upgrade?
The upgrade came on the back of a string of positive events for
Jun 10, 2013
, Diodes revised its second quarter 2013 guidance. Diodes now
expects revenues in the range of $210.0-$218.0 million compared
with the previous expected range of $206.0-$218.0 million. Also,
gross margin is expected to be 28.0% (+/- 2.0%), up from the
prior guidance of 27.0% (+/- 2.0%). The revised revenue guidance
reflects greater contribution from the integration of BCD
Semiconductor. The revised gross margin expectation reflects
better utilization and cost savings from in-sourcing of packaging
costs for BCD's products.
May 9, 2013
, Diodes reported solid first quarter 2013 results with earnings
per share of 16 cents, which surpassed the Zacks Consensus
Estimate by 166.7% and the year-ago level by 77.8%. Revenues grew
22.3% year over year to $177.0 million on continuous design wins
and contribution from BCD Semiconductor.
Mar 5, 2013
, Diodes completed the acquisition of BCD Semiconductor, a
China-based manufacturer of analog integrated circuits, in a cash
deal worth $151.0 million. The acquisition promises cross-selling
opportunities, increased penetration into the Chinese market,
gross margin expansion by way of reduced packaging costs (BCD's
packaging costs were higher due to outsourcing, which will now be
in-sourced by Diodes) and economies of scale.
Over the past 30 days, the Zacks Consensus Estimates for 2013 and
2014 increased 3.7% and 5.4%, respectively to $1.12 and $1.76 per
share. Notably, 5 and 3 estimates were revised upwards for 2013
and 2014, respectively over the past 30 days.
In the past four quarters, the company posted an average surprise
of 76.7%. Considering the above factors, Diodes has the potential
to post a positive earnings surprise in the upcoming quarter.
Other Stocks to Consider:
Investors could also consider similar stocks that are doing well
right now. These include
Advanced Micro Devices Inc.
Integrated Device Technology Inc.
Omnivision Technologies Inc.
) all carrying a Zacks Rank #1 (Strong Buy).
ADV MICRO DEV (AMD): Free Stock Analysis
DIODES INC (DIOD): Free Stock Analysis Report
INTEGR DEVICE (IDTI): Free Stock Analysis
OMNIVISION TECH (OVTI): Free Stock Analysis
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