Fairchild Semiconductor International Third Quarter Earnings Sneak Peek

Fairchild Semiconductor International (NYSE:FCS) will unveil its latest earnings on Thursday, October 18, 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 analyst estimate is for net income of 17 cents per share, a decline of 50% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 24 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 17 cents during the last month. For the year, analysts are projecting profit of 59 cents per share, a decline of 54.6% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 2 cents, coming in at net income of 14 cents per share against a mean estimate of profit of 16 cents. The company topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 73.5% to $11.9 million (9 cents a share) from $44.9 million (34 cents a share) the year earlier, missing analyst expectations. Revenue fell 16.6% to $361.5 million from $433.2 million.

Stock Price Performance: Between August 16, 2012 and October 12, 2012, the stock price had fallen $3.56 (-23.1%), from $15.44 to $11.88. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 14.1% (+$1.91) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 12.2% (-$1.83) over that span.

Wall St. Revenue Expectations: On average, analysts predict $368.1 million in revenue this quarter, a decline of 8.7% from the year-ago quarter. Analysts are forecasting total revenue of $1.46 billion for the year, a decline of 8.2% from last year’s revenue of $1.59 billion.

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 2.7% in the third quarter of the last fiscal year, 14.7% in fourth quarter of the last fiscal year and 14.7% in the first quarter and then fell again in the second 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 57% over the past four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.61 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. The company regressed in this liquidity measure from 3.85 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 8.6% to $231.4 million while assets rose 1.8% to $835.1 million.

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.

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

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