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The company’s stock soared by 8% following the announcement, indicating a positive market response to the strong guidance and financial results.
For the third quarter ended March 29, 2024, Fabrinet announced a revenue of $731.5 million, a significant increase from $665.3 million in the same quarter last year, and well above the consensus estimate of $710.37 million.
The adjusted earnings per share (EPS) were $2.39, comfortably beating the analyst estimate of $2.09 by $0.30. This performance reflects a YoY increase in both revenue and EPS, with last year’s third quarter reporting an adjusted EPS of $1.94.
CEO Seamus Grady attributed the quarter’s success to record datacom revenue driven by high demand for high-data-rate products and growth in telecom revenue, particularly from datacenter interconnect products. Despite inventory adjustments in traditional telecom products, Grady expressed confidence in the company’s position and its ability to deliver strong performance moving forward.
Looking ahead, Fabrinet’s guidance for the fourth quarter ending June 28, 2024, is also promising. The company forecasts revenue to be between $720 million and $740 million, with the midpoint of $730 million exceeding the analyst consensus of $726.6 million. The guidance for adjusted EPS stands at $2.20 to $2.27, with the midpoint surpassing the consensus of $2.13.
The positive outlook is supported by anticipated continued strength in datacom and expected sequential growth in the automotive sector. Grady’s statement underlined the company’s readiness to further advance its leadership position, despite ongoing industry challenges.
Investors reacted favorably to the news, as evidenced by the 8% uptick in Fabrinet’s stock price, reflecting confidence in the company’s future performance and strategic direction.
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