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 ...

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 ...

Core Viewpoint - Fabrinet (FN) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report, supported by a solid history of performance in the Zacks Electronics - Miscellaneous Components industry [1]. Summary by Sections Earnings Performance - Fabrinet has consistently beaten earnings estimates, with an average surprise of 7.35% over the last two quarters [2]. - In the last reported quarter, Fabrinet achieved earnings of $2.39 per share, exceeding the Zacks Consensus Estimate of $2.12 per share, resulting in a surprise of 12.74% [3]. - For the previous quarter, the company was expected to post earnings of $2.04 per share but delivered $2.08 per share, yielding a surprise of 1.96% [3]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Fabrinet, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [4]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5]. Analyst Sentiment - Fabrinet currently has an Earnings ESP of +0.78%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 indicates a potential for another earnings beat [7]. Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6]. - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the likelihood of successful investment decisions [8].

Market Overview - Major indices are climbing despite concerns over inflation, high interest rates, and geopolitical tensions, leading investors to seek stocks that can benefit from the ongoing equity surge [1][3] - The S&P 500 Index has experienced 27 bull markets from 1928 to 2023, with an average gain of nearly 115% over 2.7 years, and recently re-entered bull market territory in June 2023 [2] Eli Lilly (LLY) - Eli Lilly reported a 26% increase in revenue for Q1 2024, driven by new product launches like Mounjaro and Zepbound [6] - The company's gross margin rose from 78.4% in Q1 2023 to 82.5% in Q1 2024, with operating income growing by 63% and earnings per share increasing by 59% [7] - Eli Lilly raised its full-year 2024 revenue guidance to between $42.4 billion and $43.6 billion, indicating potential for further margin expansion [7][8] Fabrinet (FN) - Fabrinet's market cap is $8.4 billion, with Q3 fiscal year 2024 revenue reported at $731.5 million, up from $665.3 million year-over-year [11] - The company saw a 150% year-over-year growth in datacom revenue, reflecting strong performance in optical communications [12] - FN stock has returned 22% year-to-date, trading at 26.2 times forward earnings and 3.1 times sales, with potential for continued growth [13] Vanguard Growth ETF (VUG) - The Vanguard Growth ETF provides exposure to large-cap U.S. growth stocks, with over half of its holdings in technology [15][17] - Since January, VUG has gained over 11%, outperforming the Nasdaq 100 index (9%), S&P 500 (10%), and Dow Jones Industrial Average (5%) [19] - The fund trades at 38 times trailing earnings and 10 times book value, with a competitive expense ratio of 0.04% and a modest 0.5% dividend yield [19]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 29, 2024 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from__________to__________ Commission File Number: 001-34775 FABRINET Ordinary Shares, $0.01 par value FN New York S ...