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Research Alert: Diod Extends Growth Streak, Automotive/industrial Fueling Margin Improvement

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

DIOD posted Q1 revenue of $405.5M (+22% Y/Y), beating consensus and guidance by $10M, marking the strongest growth since Q4 2021 and the fifth consecutive quarter of double-digit expansion. Non-GAAP EPS surged to $0.43 (+126% Y/Y) vs. consensus of $0.30, with gross margin reaching 31.8%, the highest since Q4 2025, driven by favorable mix toward automotive/industrial products. We remain cautious on sustainability given formidable competition in commodity analog/discrete products, though the automotive recovery has been stronger than anticipated amid mixed OEM signals. Q2 guidance projects sales of $435M (+19% Y/Y) with gross margin expanding to 32.8% and EPS of $0.60 vs. consensus at $0.55. We are watching whether AI-server momentum can be sustained as DIOD faces intense competition. The balance sheet remains solid with $409M cash vs. $55M debt, though we view inventory management as a work in progress during this growth phase.

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