Fabrinet (FN) reported $753.26 million in revenue for the quarter ended June 2024, representing a year-overyear increase of 14.9%. EPS of $2.41 for the same period compares to $1.86 a year ago. The reported revenue represents a surprise of +2.55% over the Zacks Consensus Estimate of $734.55 million. With the consensus EPS estimate being $2.25, the EPS surprise was +7.11%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Fabrinet (FN) reported earnings of $2.41 per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate by 7.11%. The figure increased 29.6% year over year. Revenues of $753.3 million increased 15% on a year-over-year basis and 3% from the previous quarter's tally, surpassing the consensus mark by 2.55%. The upside was primarily driven by the significant increase in datacom revenues, which rose more than 120% during the year. Quarter in Details Optical Communications, as a percentage of reven ...

Shares of Fabrinet FN skyrocketed in early trading on Tuesday, after the company reported results for its fiscal fourth quarter. The results came amid an exciting earnings season. Here are some key analyst takeaways. JPMorgan analyst Samik Chatterjee reiterated a Neutral rating, while raising the price target from $240 to $285. Needham analyst Alex Henderson maintained a Buy rating, while lifting the price target from $270 to $280. Check out other analyst stock ratings. JPMorgan: Fabrinet's Datacom business ...

Security and Risk Management - The company has not experienced any material security breaches in its systems or third-party systems in the past three years[168]. - The company has established a cybersecurity risk management process overseen by its board of directors and an internal IT security committee[169]. Shareholder Information - As of June 28, 2024, the company has a total of 6 shareholders of record for its ordinary shares[176]. - The company intends to retain earnings for business use and does not currently plan to pay dividends on its ordinary shares[177]. Share Repurchase and Authorization - During the three months ended June 28, 2024, the company repurchased a total of 20,887 shares at an average price of $186.49, totaling approximately $39.5 million[179]. - The company has a remaining authorization to repurchase up to $60.5 million worth of its ordinary shares as of June 28, 2024[179]. Revenue and Market Performance - Revenues from customers outside North America increased from 52.0% in fiscal year 2023 to 63.5% in fiscal year 2024, driven by increased sales to a customer in Israel[189]. - The percentage of total revenues from Asia-Pacific increased to 57.1% in fiscal year 2024, up from 43.2% in fiscal year 2023[191]. - Total revenues for fiscal year 2024 are expected to be impacted by ongoing inventory corrections in the optical communications sector[188]. - Total revenues for the fiscal year ended June 28, 2024, reached $2,882.97 million, an increase of 8.96% from $2,645.24 million in the previous year[220]. - Revenues for fiscal year 2024 increased by $237.8 million, or 9.0%, to $2,882.97 million compared to fiscal year 2023[226]. - Optical communications revenues represented $2,289.0 million, or 79.4% of total revenues for fiscal year 2024, increasing by $280.7 million, or 14.0%[226]. - Non-optical communications revenues decreased by $42.9 million, or 6.7%, to $593.9 million, primarily due to inventory absorption in the automotive market[226]. Financial Performance - Gross profit for the same period was $356.12 million, reflecting a gross margin of approximately 12.35%[220]. - Operating income increased to $277.61 million, up from $251.70 million, representing a growth of 10.29% year-over-year[220]. - Net income for the fiscal year was $296.18 million, compared to $247.91 million in the prior year, marking a 19.43% increase[220]. - Interest income significantly rose to $33.20 million from $11.23 million, indicating a substantial increase in financial income[220]. - Selling, general, and administrative expenses were $78.48 million, slightly up from $77.67 million, indicating a modest increase in operational costs[220]. Cost and Expense Management - Employee costs, a major component of cost of revenues, are projected to rise due to increasing wages in Thailand and the PRC[194]. - Charges for discretionary merit-based bonuses to non-executive employees were $7.1 million in fiscal year 2024, up from $6.8 million in fiscal year 2023[197]. - SG&A expenses are expected to increase in fiscal year 2025 compared to fiscal year 2024, primarily due to rising compensation-related expenses[198]. - The company expects an increase in selling, general and administrative (SG&A) expenses for fiscal year 2025 compared to fiscal year 2024[182]. Cash Flow and Investments - Cash, cash equivalents, and short-term investments increased to $858.6 million as of June 28, 2024, up from $550.5 million as of June 30, 2023[240]. - Cash provided by operating activities for fiscal year 2024 was $413.1 million, compared to $213.3 million for fiscal year 2023[244]. - The company had no outstanding debt as of June 28, 2024, down from $12.2 million as of June 30, 2023[240]. - The company reported a foreign exchange gain of $0.38 million, contrasting with a loss of $1.21 million in the previous year[220]. Taxation - The effective income tax rate for the company was approximately 4.87% for the fiscal year ended June 28, 2024[220]. - The corporate income tax rate for the Thai subsidiary is currently 20%, with various tax incentives available until 2031[210]. - A full valuation allowance of $2.7 million for deferred tax assets was set up for the subsidiary in Israel due to expected net operating losses[218]. Assets and Liabilities - Total current assets increased to $2,012.7 million as of June 28, 2024, up from $1,652.5 million as of June 30, 2023, representing a growth of approximately 21.8%[277]. - Total liabilities rose to $592.8 million as of June 28, 2024, compared to $511.0 million as of June 30, 2023, indicating an increase of about 15.9%[277]. - Shareholders' equity increased to $1,745.7 million as of June 28, 2024, up from $1,468.7 million as of June 30, 2023, marking a growth of approximately 18.9%[277]. Inventory and Receivables - Trade accounts receivable increased to $592.5 million as of June 28, 2024, from $531.8 million as of June 30, 2023, reflecting a growth of approximately 11.4%[277]. - Inventories decreased to $463.2 million as of June 28, 2024, down from $519.6 million as of June 30, 2023, indicating a decline of about 10.8%[277]. Derivatives and Foreign Currency - The company had $135.0 million of foreign currency forward contracts outstanding on Thai baht payables as of June 28, 2024[203]. - The company recognized a derivatives gain of $3,007,000 from foreign currency forward contracts in other comprehensive income for the year ended June 28, 2024[352]. - The unrealized gain from changes in fair value of foreign currency forward and option contracts not designated for hedge accounting was $0.7 million for the year ended June 28, 2024[349]. Accounting and Reporting - The critical audit matter identified was related to revenue recognition, specifically the evaluation of terms and conditions in contracts[270]. - The Company recognizes revenue primarily from product assembly and customized optics fabrication, following a five-step revenue recognition process[310]. - The Company is currently assessing the impact of new accounting standards issued in November and December 2023, which will be effective in fiscal years 2025 and 2026 respectively[324].

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $753 million, exceeding guidance and reflecting a 15% year-over-year increase and a 3% increase from Q3 [4][8] - Full year revenue totaled $2.9 billion, a 9% increase from fiscal year 2023 [4][9] - Non-GAAP EPS for Q4 was $2.41, surpassing guidance, while full year non-GAAP EPS reached a record $8.88, up 16% year-over-year [4][14] Business Line Data and Key Metrics Changes - Optical communications revenue was $596 million in Q4, accounting for 79% of total revenue, with datacom revenue at $350 million, up 63% year-over-year [9][10] - Telecom revenue was $282 million, down approximately 1% from Q3, but the decline was smaller than expected due to growth in data center interconnect products [9][10] - Non-optical communications revenue grew to $157 million, up 2% year-over-year and 12% sequentially, driven by automotive revenue which increased 17% sequentially [11][12] Market Data and Key Metrics Changes - Datacom revenue grew over 120% for the year, while telecom revenue declined more than 20% due to inventory digestion in the telecom industry [4][5] - Revenue from products rated at 800 gig and faster was $259 million, up 54% year-over-year, indicating strong demand trends [10][11] - Six customers are currently utilizing ZR optics for DCI applications, contributing to growth in the telecom segment [31] Company Strategy and Development Direction - The company plans to break ground on Building 10 at its Chonburi campus, a 2 million square foot facility, to enhance manufacturing capacity [7][8] - The decision to expand is based on overall business conviction, not limited to any single segment, with expected revenue capacity from Building 10 estimated at $2.4 billion [22][23] - The company is optimistic about future growth in datacom and is seeing signs of recovery in telecom, with new system program wins expected to contribute to revenue in fiscal 2025 [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued revenue growth across all major product categories in Q1 of fiscal 2025, with guidance for revenue between $760 million and $780 million [16][17] - The company anticipates that operational efficiencies will offset temporary downward pressure on margins due to seasonal merit increases [17] - Management noted that while telecom revenue has been soft, there are indications of recovery, and datacom growth appears sustainable [26][29] Other Important Information - The company repurchased approximately 21,000 shares in Q4 at an average price of $170 per share, with a total cash outlay of $3.5 million [15] - The company maintains a strong balance sheet with cash and short-term investments of $859 million, up $65 million from Q3 [14] Q&A Session Summary Question: Timing around 1.6T and demand for 400 gig and 800 gig - Management is working with customers on 1.6T but believes 800 gig will remain relevant for a long time, with strong demand expected [19][20] Question: Conviction for Building 10 expansion - The decision to expand is based on overall business confidence, with significant upside potential and minimal downside risk [22][23] Question: Customer base for 800 gig transceivers - The company is seeing strong demand from NVIDIA and is pursuing additional customers in the datacom space [25][26] Question: Growth of coherent ZR optics - The telecom business is stabilizing, with growth in DCI driven by ZR optics [31][43] Question: Ciena win and its impact - The Ciena win is expected to ramp up in fiscal 2026, with early contributions anticipated in fiscal 2025 [52]

Fabrinet (FN) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 7.11%. A quarter ago, it was expected that this company that assembles optical, electro-mechanical and electronic devices for other companies would post earnings of $2.12 per share when it actually produced earnings of $2.3 ...

Exhibit 99.1 Fabrinet Announces Fourth Quarter and Fiscal Year 2024 Financial Results • Record Fourth Quarter Revenue and Earnings Per Share Exceed Guidance BANGKOK, Thailand – August 19, 2024 – Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its fourth quarter and fiscal year ended June 28, 2024. Seamus Grady ...

Record Fourth Quarter Revenue and Earnings Per Share Exceed Guidance BANGKOK, Thailand, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its fourth quarter and fiscal year ended June 28, 2024. Seamus Grady, Chief Executive Officer of Fabrinet, said, "Our strong fourth quarter r ...

What: Fabrinet Fourth Quarter and Fiscal Year 2024 Financial Results Call When: Monday, August 19, 2024 Time: 5:00 p.m. EDT Live Call & Replay: https://investor.fabrinet.com/events-and-presentations/events A recorded version of this webcast will be available approximately two hours after the call and also accessible at https://investor.fabrinet.com/. The webcast will be archived on Fabrinet's website for a period of one year. SOURCE: Fabrinet BANGKOK, July 29, 2024 (GLOBE NEWSWIRE) -- Fabrinet (NYSE: FN), a ...

What: Fabrinet Fourth Quarter and Fiscal Year 2024 Financial Results Call When: Monday, August 19, 2024 Time: 5:00 p.m. EDT Live Call & Replay: https://investor.fabrinet.com/events-and-presentations/events Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, i ...