Fairchild Semiconductor Corp Earnings: Consecutive Profit Quarter Streak Stays Intact

Fairchild Semiconductor Corporation (NYSE:FCS) reported its results for the fourth quarter. Fairchild Semiconductor International is focused on developing, manufacturing and selling power analog, power discrete and certain non-power semiconductor solutions to a range of end market customers.

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Fairchild Semiconductor Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for Fairchild Semiconductor Corporation fell to $21.3 million (17 cents per share) vs. $51 million (40 cents per share) a year earlier. This is a decline of 58.2% from the year earlier quarter.

Revenue: Fell 14.7% to $339.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FCS reported adjusted net income of 15 cents per share. By that measure, the company fell short of mean estimate of 16 cents per share. It fell short of the average revenue estimate of $358.9 million.

Quoting Management: “We reduced our overall inventory dollars in the fourth quarter despite significantly lower demand,” said Mark Thompson, Fairchild’s president and CEO. “Distribution sell-through decreased 20 percent sequentially due to lower end market demand and further downstream inventory reductions in the appliance, consumer, industrial, solar and computing supply chains. We also experienced about a two to three percentage point negative impact to sales due to supply disruptions related to the flooding in Thailand. Despite the weak sell-through and supply disruptions, we reduced channel inventory by three percent and internal inventory by 10 percent sequentially. There were some bright spots in demand as our mobile analog business posted solid sequential sales growth in the fourth quarter and our auto sales also held up well. In these times of uncertain demand, we focus on tightly managing the variables under our control such as inventories and expenses. We made good progress reducing inventories and operating expenses in the fourth quarter and we plan to continue these efforts as we enter 2012.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 2 cents, and in the second quarter, it was ahead by one cent.

Net income has increased 65.2% year over year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than threefold from the year earlier quarter.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 2.7% to $403.2 million from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 20 cents per share, down from 21 cents ninety days ago. The average estimate for the fiscal year has remained at $1.31 per share.

Competitors to Watch: ON Semiconductor Corp. (NASDAQ:ONNN), National Semicond. Corp. (NYSE:NSM), Texas Instruments Inc. (NYSE:TXN), Intersil Corporation (NASDAQ:ISIL), Diodes Incorporated (NASDAQ:DIOD), STMicroelectronics N.V. (NYSE:STM), Infineon Tech. AG (IFNNY), Microsemi Corporation (NASDAQ:MSCC), Maxim Integrated Products Inc. (NASDAQ:MXIM), and Analog Devices, Inc. (NYSE:ADI).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com