Fairchild Semiconductor International Second Quarter Earnings Sneak Peek

Fairchild Semiconductor International (NYSE:FCS) will unveil its latest earnings on Thursday, July 19, 2012. 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 16 cents per share, a decline of 61% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 15 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 16 cents during the last month. Analysts are projecting profit to rise by 43.1% compared to last year’s 74 cents.

Last quarter, the company came in at net income of 6 cents per share against a mean estimate of profit of 4 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 2 cents.

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A Look Back: In the first quarter, profit fell 96.3% to $1.6 million (one cent a share) from $43.5 million (33 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 14.7% to $352.2 million from $413 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 14.5% in revenue from the year-earlier quarter to $370.3 million.

Stock Price Performance: Between April 18, 2012 and July 13, 2012, the stock price fell $1.44 (-10%), from $14.39 to $12.95. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 10, 2011, when shares rose for six straight days, increasing 16.5% (+$1.72) over that span. It saw one of its worst periods between July 22, 2011 and August 8, 2011 when shares fell for 12 straight days, dropping 28.2% (-$4.83) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.7% in the third quarter of the last fiscal year and 14.7% in fourth quarter of the last fiscal year before falling again in the first quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 38% over the past four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.85 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 nine 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.

Competitors to Watch: ON Semiconductor Corp., Nationstar Mortgage Holdings Inc, Texas Instruments, Intersil Corp, Diodes Incorporated, STMicroelectronics N.V. (ADR), Microsemi Corporation, Maxim Integrated Products Inc., and Analog Devices.

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

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