Summary of Conference Call Company Overview - The conference call features Fabrinet, a company involved in IT hardware and communications equipment, with a focus on optical and transceiver manufacturing. Key Industry Insights Telecom and Data Center Interconnect (DCI) - Fabrinet has recently separated DCI from its telecom reporting to provide clearer visibility on growth, driven primarily by the Datacom sector [4][14] - DCI products, particularly 400ZR and 800ZR, are experiencing strong growth, with five main customers contributing to this segment [4][5] - The demand for DCI is robust, with expectations for sustainable growth over the coming years [15][14] - Traditional telecom business is growing but at a more stable rate compared to the exponential growth seen in DCI [20][24] High-Performance Computing (HPC) - Fabrinet has initiated a new HPC category, primarily serving AWS, with a revenue of $15 million from qualification volumes [28][30] - The company aims to establish a cost-competitive solution in the HPC market, with potential for significant growth [31][30] - The HPC business is expected to ramp up, with plans for additional product offerings beyond PCBAs [100][105] Capacity Expansion - Fabrinet is constructing Building 10, which will add $2.5 billion in revenue capacity, with a current run rate of $4.5 billion [39][40] - The new facility will be flexible, allowing for quick repurposing based on customer needs [41][44] - The capital expenditure for Building 10 is approximately $130 million, funded from existing cash reserves [45][46] Datacom Demand - Demand for transceivers in the Datacom sector is described as insatiable, particularly with the rise of AI data centers [69][70] - Fabrinet is producing advanced transceivers (200G, 800G, and 1.6T) but faces component shortages that limit production capacity [71][73] - The company is exploring opportunities with various customers, including traditional companies and hyperscalers [78][79] Automotive Sector - Fabrinet's automotive business is stable, with growth in EV charging infrastructure and LiDAR technology [94][95] - The company has captured a significant share of the LiDAR market, positioning itself for future growth as the technology gains traction [95] Financial Performance and Strategy - Fabrinet aims for a gross margin range of 12.5%-13%, with low operating expenses around 1.6%-1.7% of revenue [93][94] - The company has a strong financial position with no debt and approximately $1 billion in cash, allowing for self-funded growth [45][46] - Fabrinet's growth strategy focuses on maintaining a compound annual growth rate of 16% over the past decade, with plans to continue this trend [130][130] Additional Considerations - The company emphasizes the importance of performance and customer satisfaction in securing additional business opportunities [106][107] - Fabrinet is committed to long-term planning, utilizing an eight-quarter rolling revenue forecast to guide its growth strategy [129][130] - The company is open to diversifying its product offerings beyond optical solutions, depending on customer demand [85][86]

Flex (NasdaqGS:FLEX) FY Conference December 09, 2025 08:30 AM ET Company ParticipantsRevathi Advaithi - CEOConference Call ParticipantsNone - AnalystNoneHere we go. Well, thank you all for joining us today. Excited to be spending time with you here, and we're fortunate to have our guest today for our conversation, the Chief Executive Officer of Flex Ltd, Revathi Advaithi.Revathi AdvaithiAdvaithi, but.Advaithi.Yes.God, sorry.Close enough.I know. I panicked right at the second. So maybe for those, not familia ...

Industry rumors swirled Monday around the future of one of beauty’s oldest contract manufacturers, which is allegedly in the process of exploring “strategic options.” Multiple sources told WWD Monday that Mana Products, the firm founded by Nikos Mouyiaris roughly five decades ago, furloughed its workforce and faces an uncertain future. More from WWD The firm’s chief executive officer, Robert Jaegly, said: “As a matter of company policy, Mana does not comment on rumors or speculation regarding personnel m ...

Core Insights - The Carillon Scout Mid Cap Fund's third-quarter 2025 investor letter highlights strong corporate earnings and AI infrastructure momentum as key drivers for the Russell Midcap Index's positive returns [1] - Celestica Inc. (NYSE:CLS) is emphasized as a significant holding, showcasing a remarkable 239.87% increase in share value over the past 52 weeks despite a recent one-month decline of 13.70% [2][3] Company Performance - Celestica Inc. reported Q3 2025 revenue of $3.19 billion, reflecting a 28% increase from Q3 2024 [4] - The company is recognized for its contract manufacturing capabilities, particularly in data center hardware and aerospace components, with strong demand for networking switches driving positive quarterly results [3] Market Position - Celestica Inc. is gaining market share in the networking industry through private label solutions, which offer lower total costs and flexible designs compared to branded vendors [3] - The company is expected to see rising earnings estimates as it secures new deals and benefits from existing hyperscaler programs ramping up faster than anticipated [3]

Core Insights - Celestica Inc. (NYSE:CLS) is recognized as a strong investment opportunity within the consumer cyclical sector, particularly due to its role in the AI ecosystem by providing essential infrastructure for data centers [1] Group 1: Analyst Ratings and Price Targets - Barclays maintained an Overweight rating on Celestica's shares and raised the price target to $359 from $357 [2] - Citi upgraded Celestica's stock to Buy from Hold, keeping its price target at $375, citing expectations of over 40% growth in hyperscaler capital expenditure in 2026 after a 75% increase in 2025 [2] Group 2: Financial Performance - Celestica reported third-quarter earnings on October 27th, achieving $3.19 billion in revenue and $1.58 in adjusted EPS, surpassing analyst expectations of $3.04 billion and $1.49 respectively [3] - Following the earnings announcement, Celestica's shares rose by as much as 10%, and management increased the full-year revenue guidance to $12.2 billion from $11.55 billion due to strong demand [3] Group 3: Demand Insights - During the third-quarter earnings call, management indicated strong visibility into customer demand, with forecasts extending 12 to 15 months ahead, particularly related to 2026 budgeting and spending commitments [4] - Management noted that certain customers have made commitments that provide assurance regarding the longevity and scale of their programs, enhancing visibility into future demand [4]

Core Insights - AI stocks have shown strong performance in 2025, with the Global X Artificial Intelligence & Technology ETF (AIQ) gaining 28.9% and the Roundhill Generative AI & Technology ETF (CHAT) up by 47.2% year-to-date, outperforming the NASDAQ 100 and S&P 500 [2] Industry Overview - The AI market is primarily dominated by major technology companies, with NVIDIA leading in hardware and Amazon, Google, and Microsoft in software [4] - Concerns have emerged regarding the costs of AI development, particularly related to the depreciation of older chips as newer versions are released, drawing parallels to the dotcom bubble of the late 1990s [5] Company Insights - **Celestica Inc. (NYSE:CLS)**: - The company reported $3.19 billion in revenue and $1.58 in adjusted EPS for Q3, exceeding analyst expectations [12] - Barclays and Citi have upgraded the stock, with price targets of $359 and $375 respectively, citing expected growth in hyperscaler capital expenditure [11] - Management indicated strong demand visibility for 12 to 15 months, with some customers providing insights into long-term commitments [13] - **HubSpot, Inc. (NYSE:HUBS)**: - The company reported $809.5 million in revenue, driven by a 21% growth in subscription revenue and 10,900 new customer additions [16] - Despite a reduction in price target by Evercore ISI to $500, the firm noted that net new annual recurring revenue is growing faster than overall revenue [15] - HubSpot's CEO emphasized the strategy of embedding AI across all platforms, which has led to improved customer outcomes, including a 10% increase in sales win rates [17]

Group 1: Fund Performance - The FPA Queens Road Small Cap Value Fund returned 7.46% in Q3 2025, underperforming the Russell 2000 Value Index which returned 12.60% [1] - For the first three quarters of 2025, the fund achieved a return of 13.77%, outperforming the index's return of 9.04% [1] Group 2: Fabrinet Overview - Fabrinet (NYSE:FN) specializes in optical packaging and precision manufacturing services, with a one-month return of -4.85% and a 52-week gain of 76.79% [2] - As of November 24, 2025, Fabrinet's stock closed at $462.67 per share, with a market capitalization of $16.576 billion [2] Group 3: Fabrinet's Market Position - Fabrinet dominates its niche in optical networking equipment and has shown impressive historical revenue growth and increasing operating margins [3] - The company has a significant customer in Nvidia, which accounts for 10% of its revenue, and has seen its stock price double since April due to rising expectations for data center spending [3] - Fabrinet is expected to continue being a "compounder" in the market, with ongoing demand for high bandwidth networking [3] Group 4: Revenue and Hedge Fund Interest - Fabrinet generated $978 million in revenue for fiscal Q1 2026, marking a 22% year-over-year increase and an 8% increase from the previous quarter [4] - The number of hedge funds holding Fabrinet decreased from 38 to 32 from the previous quarter [4]

Core Viewpoint - Zetwerk Pvt, an Indian contract manufacturer, is preparing for an initial public offering (IPO) that may raise up to $750 million, indicating strong interest in the Indian IPO market [1][2]. Company Overview - Zetwerk specializes in manufacturing fabricated metal products and serves clients across various sectors, including aerospace components, consumer electronics, and capital goods [4]. IPO Details - The company is likely to file a draft prospectus early next year through a confidential route, with the offering expected to include a mix of new and existing shares, primarily consisting of a fresh issue [2]. - The IPO is part of a broader trend in India's booming IPO market, where companies have raised approximately $19.5 billion so far this year, following a record $21 billion in 2024 [3]. Underwriters - Zetwerk has mandated several financial institutions, including Kotak Mahindra Capital Co., JM Financial Services Ltd., Avendus Capital Pvt., and the Indian units of HSBC Holdings Plc, Morgan Stanley, and Goldman Sachs Group Inc. to manage the share sale [1].

IPO Plans - Zetwerk Pvt, an Indian contract manufacturer, is preparing for an initial public offering (IPO) [1] - The IPO may raise as much as $750 million [1]

Group 1 - Celestica Inc. has transitioned from being a contract manufacturer to a design-centric platform integrator, focusing on key control points in AI data centers such as high-bandwidth switching, compute, storage, and rack-scale integration [1] - The company's hardware platform portfolio is expanding, indicating a strategic shift towards more integrated solutions in the AI sector [1] Group 2 - The article highlights the importance of expertise in AI and machine learning, suggesting that professionals in the field are increasingly pursuing advanced certifications to enhance their knowledge and skills [1]