The company delivered an impressive quarterly earnings report that featured better-than-expected earnings guidance.
Optical Equipment Supplier Fabrinet Note 15.74%) The company recorded double-digit gains in its second day of trading this week. On Tuesday, the company’s shares surged nearly 16% on the back of a much better-than-expected earnings report. Fabrinet’s stock performance for the day was: S&P 500 The index ended in negative territory, down 0.2% at the close.
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Fabrinet ended fiscal 2024 with a bang, reporting fourth-quarter results that far surpassed analysts’ average expectations. Revenue for the period ended June 28th exceeded $753 million, up 15% year over year. Non-GAAP (adjusted) net income rose even further, increasing 29% to $88 million, or $2.41 per share.
On average, analysts tracking the stock were expecting fairly modest results: They collectively expected revenue of less than $733 million and adjusted net income of just $2.24 per share.
In its earnings release, Fabrinet said the quarter marked its fourth consecutive quarter of record revenue and earnings per share.
Fabrinet also said its board of directors has authorized an expansion of the company’s existing share repurchase program. The new authorization is for $139.5 million of common stock, bringing the total authorization to $434.3 million, of which $200 million will be earmarked for repurchases.
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Fabrinet also provided guidance for the current (first) quarter. The company expects sales of $760 million to $780 million and adjusted net earnings per share of $2.33 to $2.40. As with the fourth quarter results, these ranges beat analysts’ consensus expectations of approximately $752 million in sales and $2.25 in adjusted earnings per share.
Eric Volkman does not hold any positions in any stocks mentioned. The Motley Fool does not hold any positions in any stocks mentioned. The Motley Fool has a disclosure policy.
