Diodes Inc. (DIOD) experienced a significant 24-hour plunge of 7.11% during the night session, marking a sharp reversal for the semiconductor stock that had been on a strong upward trajectory.
The decline comes despite the company reporting better-than-expected first-quarter results. Diodes posted adjusted earnings of $0.43 per share for the quarter ended March 31, beating the average analyst estimate of $0.33 per share. Revenue also exceeded expectations, coming in at $405.47 million compared to the anticipated $395.02 million, representing a 22.1% increase from the same period last year.
Analysts suggest the sell-off represents a classic "sell the news" reaction following the stock's substantial gains. Prior to the earnings release, Diodes shares had surged 70% during the quarter and were up 135% year-to-date. The company also provided guidance for the second quarter, expecting non-GAAP EPS of approximately $0.60 (plus or minus $0.10) and revenue of about $435 million (plus or minus 3%).