Shares of Diodes (DIOD) are soaring 5.05% in pre-market trading on Friday following the company's better-than-expected second-quarter earnings report and optimistic third-quarter guidance. The semiconductor manufacturer has impressed investors with its financial performance despite ongoing challenges in the industry.

Diodes reported Q2 non-GAAP earnings of $0.32 per diluted share, surpassing the FactSet consensus estimate of $0.26. While this represents a slight decrease from $0.33 a year earlier, it demonstrates the company's resilience in a challenging market. Revenue for the quarter ended June 30 reached $366.2 million, up from $319.8 million in the same period last year and exceeding analyst expectations of $357.6 million.

Adding to the positive sentiment, Diodes provided an upbeat forecast for the third quarter, projecting revenue of $392 million, plus or minus 3%. This guidance surpasses the current FactSet consensus of $382.4 million, indicating continued growth momentum. Furthermore, Truist Securities has raised its price target for Diodes from $43 to $54, reflecting increased confidence in the company's prospects. The combination of strong Q2 results, positive Q3 outlook, and analyst endorsement appears to be driving investor enthusiasm, resulting in the significant pre-market stock price increase.