On Thursday, soon-to-be-taken-private Freescale Semiconductor
- With results like these, it's easy to see why private equity group Blackstone and its allies might want Freescale under their wings. Sales and earnings growth like this doesn't grow on trees.
- The margins point to pricing power coupled with strict execution, and the gross gains amplify this farther down the ladder.
- A company that's cutting debt by a third and doubling available cash, all the while buying back more shares than it issues, is good in my book. Too bad it probably won't be around as an investment option much longer.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
---|---|---|---|---|
Sales |
$1,578 |
$1,619 |
$1,450 |
11.7% |
Net Profit |
-- |
$257 |
$164 |
56.7% |
EPS |
$0.52 |
$0.61 |
$0.38 |
60.5% |
Diluted Shares |
424 |
428 |
(0.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q3 2006 |
Q3 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
46.08% |
42.9% |
3.18 |
Operating Margin |
16.37% |
10.48% |
5.89 |
Net Margin |
15.87% |
11.31% |
4.56 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q3 2006 |
Q3 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$2,965.0 |
$1,485.0 |
99.7% |
Accounts Rec. |
$711.0 |
$710.0 |
0.1% |
Inventory |
$756.0 |
$679.0 |
11.3% |
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
---|---|---|---|
Accounts Payable |
$577.0 |
$1,014.0 |
(43.1%) |
Long-Term Debt |
$832.0 |
$1,251.0 |
(33.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
The company denied us a cash flow statement this time. Rascals!
Find out why Fools always follow the money.
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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.