Fabrinet stock surges nearly 10% after posting guidance above estimates

BANGKOK - Fabrinet (NYSE:FN ) reported fourth quarter earnings and revenue that exceeded analyst expectations, while also providing guidance above consensus estimates for the upcoming quarter.

The optical manufacturing services provider saw its shares rise 9.90% following the release.

For the fourth quarter ended June 28, 2024, Fabrinet posted adjusted earnings per share of $2.41, surpassing the analyst estimate of $2.24. Revenue came in at $753.3 million, beating the consensus projection of $732.63 million and representing a 14.8% increase YoY.

Looking ahead, the company forecast first quarter fiscal 2025 adjusted earnings per share between $2.33 and $2.40, above the $2.25 consensus. Revenue is expected to range from $760 million to $780 million, also topping analyst estimates of $751.9 million.

Seamus Grady, Chief Executive Officer of Fabrinet, commented on the results: "Our strong fourth quarter results capped a remarkable fiscal year, representing our fourth quarter in a row of record revenue, and record earnings per share, both of which were above our guidance ranges."

The company's board of directors approved an expansion of its share repurchase program, authorizing the repurchase of up to an additional $139.5 million of Fabrinet's ordinary shares. This brings the total authorization to $434.3 million, with $200 million currently remaining.

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Source: Investing.com