10/19/2012

Earnings Preview: Semiconductors Set To Report Thursday

Flextronics International Ltd. (FLEX) is expected to report last fiscal quarter's results after the closing bell on January 19, 2012. Let's review how Flextronics International has performed in recent quarters.

Flextronics International Ltd. provides design and electronics manufacturing services to original equipment manufacturers. The company was founded in 1990 and is headquartered in Singapore. FLEX trades an average of 6 million shares per day.

52 Week High: $8.50
52 Week Low: $5.05
Book Value: $3.09
Float Short: 1.56%

On average, analysts are expecting a drop of $-0.04 in earnings per share compared to last quarter's results of $0.22. Investors will be looking to see a number north of $0.18 per share, based on the earnings estimates. Analyst estimates range between $0.16 and $0.19 per share.

The company has rising revenue year-over-year of $28.68 billion for 2011 vs. $24.11 billion for 2010. The bottom line has rising earnings year-over-year of $596.22 million for 2011 vs. $18.59 million for 2010. The company's earnings before interest and taxes are rising with an EBIT year-over-year of $697.66 million for 2011 vs. $345.72 million for 2010. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Flextronics stock is once again banging its head against the 200 day moving average. A breakthough above would be a very positive technical indication of brighter stock pricing ahead.

Here is a look at the fiscal year revenue:



Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 7.76 B $ 8.04 B $ 286.44 M 3.69%
Jun-11 $ 7.34 B $ 7.55 B $ 206.23 M 2.81%
Mar-11 $ 7.28 B $ 6.86 B $ -422.20 M -5.8%
Dec-10 $ 7.61 B $ 7.83 B $ 219.79 M 2.89%
Sep-10 $ 7.01 B $ 7.42 B $ 407.75 M 5.81%

M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for FLEX:



The number of days to cover short interest based on average daily trading volume for FLEX:



Skyworks Solutions Inc (SWKS) is expected to report earnings for last fiscal quarter after the closing bell on January 19, 2012.

Skyworks Solutions, Inc., together with its subsidiaries, offers analog and mixed signal semiconductors worldwide. The company was founded in 1962 and is headquartered in Woburn, Massachusetts. SWKS trades an average of 3.9 million shares per day.

52 Week High: $37.82
52 Week Low: $13.72
Book Value: $8.63
Float Short: 4.11%

On average, analysts are expecting a drop of $-0.04 in earnings per share compared to last quarter's results of $0.54. The estimated mean earnings are $0.5 per share.

The current trailing twelve months (TTM) P/E ratio is 12. The forward P/E ratio is 10.97. Skyworks continues to dig out from a long trend downward and starting to finally break above a major moving average.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $1.42 billion for 2011 vs. $1.07 billion for 2010. The bottom line has rising earnings year-over-year of $226.59 million for 2011 vs. $137.29 million for 2010.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $295.32 million for 2011 vs. $199.74 million for 2010. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. For a company in such a strong downtrend in price the short interest is relatively low. It's good the smart money is not betting against Skyworks, but doesn't make for nearly the bang when the stock begins to move higher.

Here is a look at the fiscal year revenue:



Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 400.80 M $ 402.32 M $ 1.52 M 0.38%
Jun-11 $ 346.34 M $ 356.08 M $ 9.74 M 2.81%
Mar-11 $ 316.77 M $ 325.41 M $ 8.64 M 2.73%
Dec-10 $ 333.98 M $ 335.12 M $ 1.14 M 0.34%
Sep-10 $ 310.01 M $ 313.28 M $ 3.27 M 1.05%

M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for SWKS:



The number of days to cover short interest based on average daily trading volume for SWKS:



Fairchild Semiconductor Internat (FCS) is due to report earnings before the opening bell on January 19, 2012. Below we can see the results of Fairchild Semiconductor Internat over the last few earnings periods.

Fairchild Semiconductor International, Inc. designs, develops, manufactures, and sells power analog, power discrete, and non-power semiconductor solutions worldwide. The company was founded in 1959 and is headquartered in San Jose, California. FCS trades an average of 1.4 million shares per day.

52 Week High: $21.02
52 Week Low: $10.25
Book Value: $10.32
Float Short: 1.90%

On average, analysts are expecting a drop of $-0.18 in earnings per share compared to last quarter's results of $0.34. A beat of $0.16 per share, will top the estimated mean earnings.Analyst estimates range between $0.13 and $0.17 per share.

Fairchild is trading near the 60 and 90 day moving averages, but well off the 200 day moving average. The short interest is small, but it's not enough for me to get excited about buying this one.

Revenue year-over-year has increased to $1.60 billion for 2010 vs. $1.19 billion for 2009. The bottom line has rising earnings year-over-year of $153.20 million for 2010 vs. $-60.20 million for 2009. The company's earnings before interest and taxes are rising with an EBIT year-over-year of $184.60 million for 2010 vs. $-44.90 million for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:



Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 404.24 M $ 403.20 M $ -1.04 M -0.26%
Jun-11 $ 430.27 M $ 433.20 M $ 2.93 M 0.68%
Mar-11 $ 413.25 M $ 413.00 M $ -0.25 M -0.06%
Dec-10 $ 399.58 M $ 397.70 M $ -1.88 M -0.47%
Sep-10 $ 417.22 M $ 414.40 M $ -2.82 M -0.68%

M = millions, B = billions.
Differences are rounded.
Some onetime items are often excluded in reported EPS.

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for FCS:



The number of days to cover short interest based on average daily trading volume for FCS:

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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