Earnings Review - Fairchild Semiconductor Intl.

LONDON, October 29, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on Fairchild Semiconductor International Inc. (NASDAQ: FCS). On October 16, 2014, the company reported its financial results for Q3 FY14 (period ended September 28, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Fairchild Semiconductor Intl. Inc. (Fairchild). The company's sales grew 5% on a Y-o-Y basis and its adjusted diluted EPS increased $0.11 from the preceding year quarter. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Fairchild reported sales of $381.1 million compared to $364.6 million in the same period last year. The company's net sales during the reported quarter came marginally above Bloomberg analysts' forecast of $378.3 million. However, the company witnessed net loss of $1.0 million, or $0.01 loss per diluted share, as compared to net profit of $12.1 million, or $0.09 per diluted share, in the year-ago quarter. The company reported that there were $31.7 million in restructuring expenses and other charges related to Fairchild's manufacturing footprint consolidation included in Q3 FY14 results. Further, gross margin was 34.8% in Q3 FY14, compared to 31.5% in the corresponding quarter last year. The free research on FCS can be downloaded as in PDF format at:

www.Investor-Edge.com/FCSFreeReport

On the other hand, Fairchild's adjusted net income broadened to $34.4 million, or $0.28 per diluted share, in Q3 FY14, from $21.4 million, or $0.17 per diluted share in the same quarter last year. Analysts from Bloomberg had expected the company to report adjusted net income of $26.1 million, or $0.21 per diluted share, in Q3 FY14. Further, adjusted gross margin for Q3 FY14 stood at 35.3%, up 320 basis points from Q3 FY13.

Mark Thompson, Fairchild's Chairman and CEO, highlighted some of the key points of the recent financial results stating that the company has performed strongly in Q3 FY14. He added that sales were up seasonally and the company saw solid improvements in its gross and operating margins. He further stated that the company posted record sales into the automotive market which were up 16% from the year ago quarter, and it also maintained distribution channel inventory at a healthy level of less than 10 weeks. Sign up and read the free analyst's notes on FCS at:

www.Investor-Edge.com/FCS-29102014

Mark Frey, Fairchild's EVP and CFO, commented that the company's adjusted gross margin increased 2 points sequentially due to better product mix and higher factory loadings in the prior quarter. Mr. Frey reported that the company's R&D and SG&A expenses were at $95.4 million, down 3% sequentially, primarily due to seasonally higher vacations, lower travel expenses and ongoing cost controls. He also stated that Fairchild's free cash flow for Q3 FY14 was a positive $41.6 million, and its total cash and securities exceeded its debt by $137 million which was up $17 million from the prior quarter despite repurchasing $25 million in stock.

Commenting on the company's guidance for Q4 FY14, Mr. Frey said that Fairchild expects sales to be in the range of $340 million to $360 million and adjusted gross margin to be around 33% to 34% primarily due to lower sales and the impact of reduced factory loadings in the prior quarter. He added that the company anticipates R&D and SG&A spending to be $95 million to $97 million, and its adjusted tax rate to be at 12% plus or minus 3 percentage points for Q4 FY14. Visit Investor-Edge and access the latest research on FCS at:

www.Investor-Edge.com/FCSEarningsCoverage

Stock Performance 

On the day of the earnings release, October 16, 2014, Shares of Fairchild ended the session at $13.46, up 6.91% and witnessed a mixed momentum since then. On the last close, Tuesday, October 28, 2014, the company's stock finished at $14.50, which is 3.65% above its previous day's closing price, after vacillating between $14.02 and $14.52. A total of 1.09 million shares were traded, which was below its three months average volume of 2.07 million shares. Over the previous three trading sessions and from the beginning of 2014, the company's shares have gained 3.87% and 8.61%, respectively. However, the stock has lost 9.26% over the last one month. Shares in Fairchild are trading below their 50-day and 200-day moving averages of $15.68 and $14.55, respectively. Furthermore, the stock traded at a PE ratio of 40.78 and has a Relative Strength Index (RSI) of 44.93.

Sneak Peek to Corporate Insider Trading 

In the last one month Fairchild has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on FCS is available at:

www.Investor-Edge.com/FCSInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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