Fairchild Semiconductor Earnings Cheat Sheet: Streak of Four Straight Quarters of Expanding Margins Snapped

Fairchild Semiconductor Corporation (NYSE:FCS) reported its results for the third 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 Third Quarter

Results: Net income for the semiconductor company remained steady at $35.8 million (28 cents per diluted share) from the same quarter a year ago.

Revenue: Fell 2.7% to $403.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FCS reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. Analysts were expecting revenue of $404.2 million.

Quoting Management: “We delivered double-digit sales growth for our mobile analog products during the quarter,” said Mark Thompson, Fairchild’s president and CEO. “MCCC sales were flat from the prior quarter which reflects this increase in mobile demand offset by weaker sales into the computing and consumer end markets. PCIA sales were down 10 percent sequentially due to customers in the consumer, appliance and solar sectors reducing inventories in addition to the normal seasonal weakness for industrial and automotive markets in the second half.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 24.9%.

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

Net income has increased more than fourfold year over year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 1225.9% 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 fourth quarter is 28 cents per share, down from 41 cents ninety days ago. At $1.42 per share, the average estimate for the fiscal year has fallen from $1.62 ninety days ago.

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), Intel Corp (NASDAQ:INTC), 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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(Source: Xignite Financials)