Fairchild Semiconductor Profit Tops Estimate - Update

(RTTNews) - Fairchild Semiconductor International Inc (FCS) Thursday reported a swing to profit in the second quarter, helped by a four percent climb in revenue as well as improved gross margin, as earnings topped Wall Street estimates.

The company provided its sales guidance for the third quarter, the midpoint of which is indicated to fall short of analysts' estimates.

Fairchild shares were up 3.6 percent in morning trade on the Nasdaq, following the announcement of results.

"Fairchild continues to deliver steady sales growth due to improved execution and broad-based demand strength," said Mark Thompson, Fairchild's CEO.

San Jose, California-based Fairchild posted quarterly net earnings of $17.8 million or $0.14 per share, compared with a loss of $7.5 million or $0.06 per share last year.

Excluding items, adjusted earnings for the quarter were $25.2 million or $0.20 per share.

On average, 12 analysts polled by Thomson Reuters estimated earnings of $0.11 per share. Analysts' estimates typically exclude special items.

Revenue for the second quarter climbed to $371.6 million from $356.5 million in the prior year. Eleven analysts on consensus estimated revenues of about $365.6 million for the quarter.

Gross margin for the quarter improved to 33.4 percent from 29.1 percent in the prior year.

For the third quarter, Fairchild projects revenue of $370 million to $385 million, while analysts currently expect $378.3 million.

Among peers, Cypress Semiconductor Corp (CY) posted a better-than-expected second-quarter profit, with net earnings rising to $9.5 million or $0.06 per share from $3.8 million or $0.02 per share last year. Adjusted earnings-per-share were $0.16, topping analysts' estimates of $0.12.

FCS is trading at $16.18, up $0.57 or 3.65%, on a volume of about 4 million shares.