Fairchild Semiconductor (FCS) shares are surging on the most recent quarterly report. Share of FCS are also a great value as analysts continue to raise estimates.

Company Description

Fairchild Semi makes energy-efficient semiconductors for consumer, communication, automotive and other areas. The company has anything from AC/DC to photo and infrared systems.

Solid Growth

Fairchild reported fourth-quarter results on Jan 21 that showed sales of $355 million, up 7% sequentially and 11% year over year. Adjusted net income came in at $30 million, doubling last year’s total.

Earnings per shares were 23 cents, 6 cents higher than the Zacks Consensus Estimate. This was Fairchild’s sixth straight surprise and the company has not missed in 4 years.

Better Balance Sheet

During the quarter, Fairchild management used strong cash flows to retire debt, often under par, and recorded a $2 million gain on the year. At the end of the year, the debt level was reduced by $63 million, or 12%.

Outlook

Fairchild’s backlog is up about 10% year over year to $369 million. The company is expecting sales to improve to $370 million in the first quarter of 2010, $15 million higher than the previous quarter.

Estimates Pop

Shortly after the quarterly results, Fairchild analysts raised full-year estimates for both 2010 and 2011. The Zacks Consensus Estimate for 2010 is up 25 cents to 90 cents.

Next year analysts are expecting $1.00 per share, up 11 cents. Compare these levels to last years gain of 1 cent.

The Chart

Shares of FCS jumped after the earnings news and could produce a momentum-based buy signal using the MACD. The stock is also a great value at just 9 times 2011 earnings. The price to book is 1.2 times and the price to sales is 1.0, less than half the industry average.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Zacks Investment Research

1. (CGA) China Green Agriculture – Margins Expand – Strong Balance SheetChina Green Agriculture, Inc. (CGA) is once again pressuring its 52-week high after jumping higher...
2. (BCS) Barclays Plc Could Sell £4B in Assets to Clean Balance SheetBarclays Plc (BCS) is contemplating to spin off a £4 billion portfolio of complex credit...
3. (LLL) L-3 Communications Holdings Cleaning Up Balance SheetL-3 Communications Holdings Inc. (LLL) yesterday announced that its subsidiary L-3 Communications Corporation will issue...
4. (SHLD) Sears Reports a Mixed Bag – improvement in the balance sheetSears Holding Corporation (SHLD), the fourth largest broadline retailer in the U.S., has reported relatively...
5. (RGS) Regis Beats Low Expectations – Management has taken steps to strengthen its balance sheetRegis Corporation’s (RGS) fourth quarter operating earnings of 59 cents per share were ahead of...
6. (HMSY) HMS Holdings – Pristine Balance SheetHMS Holdings Corp. (HMSY) is projecting another strong year of earnings in 2009, recently providing...

Search Posts by Tag: Fairchild Semiconductor International Inc | FCS | Semiconductor - Integrated Circuits | Technology

RSS Feeds by Tag: Fairchild Semiconductor International Inc | FCS | Semiconductor - Integrated Circuits | Technology |

Other Posts by: vitalstocks | RSS Feed for this author