Supplier of optical equipment Fabrinet ( FN 15.74% ) Fabrinet’s stock had a remarkable performance on the second day of trading this week, with its share price surging by almost 16% on Tuesday due to an earnings report that exceeded predictions by a wide margin. This strong showing was notable given the circumstances. S&P 500 The index finished in the negative zone, ending the day with a decrease of 0.2%.
A great method to start the new financial year
Fabrinet ended its fiscal year 2024 impressively by surpassing the average analyst predictions with its fourth-quarter performance. By June 28, the company generated over $753 million in revenue, marking a 15% increase compared to the previous year. Non-GAAP Net income increased significantly, surging by 29% to reach $88 million, equivalent to $2.41 per share.
On average, analysts who follow the stock anticipated a significantly less impressive outcome. Together, they predicted a revenue of under $733 million and an adjusted net profit of just $2.24 per share.
In Fabrinet’s financial report, it was highlighted that the quarter marked the fourth consecutive period of achieving record revenue and earnings-per-share numbers.
Fabrinet announced that its board of directors has given the green light to increase the current stock repurchase plan. The approved amount for buying back the company’s ordinary shares is now $139.5 million, raising the total authorized sum to $434.3 million. As of now, there is $200 million left for future buybacks.
Doing really well in providing guidance as well.
Fabrinet provided an outlook for its upcoming first quarter. The company anticipates generating revenue between $760 million and $780 million, with adjusted net income projected to be between $2.33 and $2.40 per share. These forecasts exceed the consensus analyst predictions, which projected revenue of approximately $752 million and adjusted earnings per share of $2.25 for the same period as the fourth quarter.
