Fairchild Semiconductor (FCS) is operating at peak efficiency and on a great streak of beating Wall Street expectations.
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.
Another Earnings Surprise
The company released earnings results on Jul 15 that included an 8% revenue increase, to $410 million. Net income came in at $43.8 million, or 40 cents per share. The company is also operating at the most efficient level it has seen in 10 years, with a gross margin above 35%.
Analysts were looking for just 31 cents, giving Fairchild its eighth consecutive earnings surprise. Additionally, management said it saw higher demand across almost all of its product lines.
Since the news the Zacks Consensus Estimate for this year is up to $1.44 cents, from $1.23. Last year Fairchild posted a 1 cent gain, giving the company an exponential growth rate.
Below you can see the V-shape recovery in the full-year estimates for Fairchild, yet shares have not bounced back leaving plenty of upside potential here.