Fairchild Semi Earnings: A Mixed Bag

Fairchild Semiconductor International Inc. (NYSE:FCS) had a loss and met Wall Street’s expectations, AND came up short on beating the revenue expectation. Despite the mixed report, investors are optimistic and shares are up 4.98%.

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Fairchild Semiconductor International Inc. Earnings Cheat Sheet

Results: Net loss of $13.6 million (loss of 11 cents per diluted share) in the quarter versus a net loss of $21.3 million in the year-earlier quarter.

Revenue: Decreased 1.77% to $333.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fairchild Semiconductor International Inc. reported adjusted net income of 10 cents per share. By that measure, the company met the mean analyst estimate of $0.10. It missed the average revenue estimate of $340.28 million.

Quoting Management: “We saw better than seasonal distribution sell through and a significant improvement in bookings during the fourth quarter,” said Mark Thompson, Fairchild’s chairman and CEO…

…The solid sell through contributed to our larger than expected channel inventory reduction of $17 million during the fourth quarter. Bookings were up substantially in the fourth quarter and we have a solidly positive book to bill so far in the first quarter. We also reduced internal inventory another 2% and now have very lean channel and internal inventories at levels not seen since we emerged from the recession. We believe we are well positioned to translate improving demand into higher sales and margins as we progress through 2013.”

Key Stats:

Revenue decreased 7.08% from $358.8 million in the previous quarter. Net income increased to $0 in the quarter versus a net loss of $24.7 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.12 and has not changed. For the current year, the average estimate has moved down from a profit of $0.56 to a profit of $0.55 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)