Fairchild Semiconductor Fourth Quarter Earnings Sneak Peek

Fairchild Semiconductor International (NYSE:FCS) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. 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.

Fairchild Semiconductor International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 10 cents per share, a decline of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 14 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 10 cents during the last month. Analysts are projecting profit to rise by 56.9% compared to last year’s 56 cents.

Last quarter, the company came in at net income of 25 cents per share against a mean estimate of profit of 17 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 2 cents.

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A Look Back: In the third quarter, profit fell 31% to $24.7 million (19 cents a share) from $35.8 million (28 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 11% to $358.8 million from $403.2 million.

Here’s how Fairchild Semiconductor traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

FCS

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 14.7% in the fourth quarter of the last fiscal year, 14.7% in first quarter and 16.6% in the second quarter and then fell again in the third quarter.

Heading into this earnings announcement, net income has dropped 64.8% on average for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $340.3 million in revenue this quarter, a rise of 0.3% from the year-ago quarter. Analysts are forecasting total revenue of $1.42 billion for the year, a decline of 10.7% from last year’s revenue of $1.59 billion.

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