Fairchild Semiconductor International Beats Expectations but Takes a Step Back Anyway

Seth Jayson, The Motley Fool
Updated

Fairchild Semiconductor International (NYS: FCS) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended April 1 (Q1), Fairchild Semiconductor International met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.


Margins contracted across the board.

Revenue details
 Fairchild Semiconductor International reported revenue of $352.2 million. The 13 analysts polled by S&P Capital IQ foresaw a top line of $355.8 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $413.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Non-GAAP EPS came in at $0.06. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.05 per share on the same basis. GAAP EPS of $0.01 for Q1 were 97% lower than the prior-year quarter's $0.33 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 29.8%, 710 basis points worse than the prior-year quarter. Operating margin was 1.5%, 1,170 basis points worse than the prior-year quarter. Net margin was 0.5%, 1,000 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $360.0 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.73.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fairchild Semiconductor International is outperform, with an average price target of $15.92.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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