Supplier of optical equipment Fabrinet (NYSE: FNY) was quite a double-digit outperformer on the second trading day of the week. On Tuesday, the company’s share price shot up nearly 16% thanks to an earnings report that significantly beat expectations. Fabrinet stock’s performance on the day was particularly impressive considering that the S&P500 The index closed in negative territory, down 0.2% at the end of the day.
A good start to the new financial year
Fabrinet closed out its fiscal 2024 with flying colors, delivering fourth-quarter results that handily beat average analyst estimates. For the period ended June 28, the company posted revenue of over $753 million, a figure that is 15% higher than the year before. Non-GAAP net income (adjusted) rose even more, rising 29% to $88 million, or $2.41 per share.
On average, analysts who follow the stock had expected a much more modest development. Overall, they had forecast sales of less than $733 million and adjusted net income of just $2.24 per share.
Fabrinet did not fail to mention in its earnings release that this was the fourth consecutive quarter in which the company reported record sales and earnings per share.
Fabrinet also announced that its board of directors has approved an expansion of the company’s existing share repurchase program. The new authorization is for $139.5 million of common stock, bringing the total authorized amount to $434.3 million, with $200 million remaining for repurchases.
Everything is included in the consultation
Fabrinet also provided guidance for the current (first) quarter. The company expects revenue of $760 million to $780 million and adjusted net income of $2.33 to $2.40 per share. As with the fourth-quarter results, these ranges were above analyst consensus estimates, which called for revenue of nearly $752 million and adjusted earnings per share of $2.25.
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Eric Volkman does not own any stocks mentioned. The Motley Fool does not own any stocks mentioned. The Motley Fool has a disclosure policy.
Why Fabrinet shares rose nearly 16% today was originally published by The Motley Fool.
