Freescale Semiconductor stock

August 13, 2022
Earnings Send Freescale

NEW YORK (TheStreet) - Shares of Freescale Semiconductor (FSL ) are up 8.07% to $37.50 in pre-market trade after it was reported that the company that provides microcontrollers and digital networking processors, is up for sale and has hired investment bankers, sources told the New York Post.

The Austin, TX-based company is owned by private-equity firms Blackstone (BX ), Carlyle (CG ), TPG and Permira. It went public in 2011.

In January, it was reported that Samsung Electronics (SSNLF ) may consider buying Freescale, according to Bloomberg.

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Separately, TheStreet Ratings team rates FREESCALE SEMICONDUCTOR LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate FREESCALE SEMICONDUCTOR LTD (FSL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • FREESCALE SEMICONDUCTOR LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FREESCALE SEMICONDUCTOR LTD turned its bottom line around by earning $0.80 versus -$0.81 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $0.80).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 153.4% when compared to the same quarter one year prior, rising from -$118.00 million to $63.00 million.
  • 46.87% is the gross profit margin for FREESCALE SEMICONDUCTOR LTD which we consider to be strong. Regardless of FSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FSL's net profit margin of 5.71% is significantly lower than the industry average.
  • Powered by its strong earnings growth of 143.47% and other important driving factors, this stock has surged by 95.05% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • You can view the full analysis from the report here:
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