Update: Fairchild Semiconductor Q3 Earnings - Improved Margins And Low Tax Rate
Martin Vlcek • Fri, Oct. 17
- Fairchild reported strong results, beating on sales and adjusted EPS. Margins improved, debt decreased due to strong FCF generation.
- Last year, I advised to buy Fairchild on dips. The stock rewarded patient investors with up to 40% gains but recently fell hard along with other small-caps.
- I reiterate my buy recommendation with an intrinsic value of ~$14 to $15, offering a ~10% to 20% upside within a year as negative market and industry sentiment turn around.