Fairchild Semiconductor Corp. Earnings: Margins Expand For Fifth Straight Quarter, Net Income Rises

Fairchild Semiconductor Corporation (FCS) reported net income above Wall Street’s expectations for the most recent quarter. Fairchild Semiconductor International, Inc. 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 Second Quarter

Results: Net income for the semiconductor company rose to $44.9 million (34 cents per share) vs. $43.8 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 2.5% from the year earlier quarter.

Revenue: Rose 5.8% to $433.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FCS reported adjusted net income of 41 cents per share. By that measure, the company beat the mean estimate of 40 cents per share. Estimates ranged from 39 cents per share to 41 cents per share. Analysts were expecting revenue of $430.3 million.

Quoting Management: “We delivered solid sales growth at the high end of our guidance for the second quarter,” said Mark Thompson, Fairchild’s president and CEO. “We grew PCIA sales 7% sequentially which was paced by our capacity additions to support strong high voltage demand from industrial, automotive and appliance customers. We increased MCCC sales 3% sequentially which reflects generally seasonal strength in their key end markets. Fairchild continues to benefit from increased content in the industrial, appliance, automotive and alternative energy sectors plus share gains in mobile analog.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 2.1 percentage points to 37.1% from the year earlier quarter. Over that span, margins have grown on average 7.2 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 6 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.3% to $413 million in the first quarter. The figure rose 12.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 24.9% in the third quarter of the last fiscal year from the year-ago quarter.

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), Analog Devices, Inc. (NYSE:ADI), Texas Instruments Incorporated (NYSE:TXN), Intel Corporation (NASDAQ:INTC).

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(Source: Xignite Financials)