Fairchild Semiconductor International Inc. (FCS) reported a second quarter of net losses on July 18. Investors were rightfully disappointed and the stock fell more than 15% to recover slightly later on, but still down by almost 13% from its pre-earnings level.
The question is: Will Fairchild be able to keep growing sales and improving margins to generate an EPS rebound in the short run and in the long term?
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source: company materials, SEC
My answer is yes; the company will most probably be able to post positive earnings next quarter and will also be able to grow its sales in the long run, providing much-needed boost to its gross margins and bottom line.