Fabrinet (FN) Q4 Earnings Top Estimates, Revenues Up Y/Y
Fabrinet FN reported fourth-quarter fiscal 2023 earnings of $1.86 per share, beating the Zacks Consensus Estimate by 3.33%. The figure increased 10.7% year over year.
Revenues of $655.9 million increased 11.6% on a year-over-year basis and surpassed the consensus mark by 2.18%.
Quarter in Details
Optical Communications, as a percentage of revenues, was 77% compared with 79% in the year-ago quarter. Datacom accounted for 38% while Telecom contributed 62%.
Optical Communications revenues were flat sequentially. Telecom revenues decreased due to higher inventories of customers. However, datacom revenues grew 50% sequentially and more than doubled on a year-over-year basis.
Non-Optical Communications, as a percentage of revenues, was 23% compared with 21% in the year-ago quarter. Revenues declined sequentially but increased almost 25% year over year.
Fabrinet Price, Consensus and EPS Surprise
Fabrinet price-consensus-eps-surprise-chart | Fabrinet Quote
Silicon photonics revenues of $88.1 million declined 19% sequentially. Revenues from products rated 400-gig and faster grew to a new record of $266.8 million, up 49% year over year and 21% sequentially. Revenues from 100-gig programs were $96 million, down 32% year over year and 14% sequentially.
In fourth-quarter fiscal 2023, gross margin contracted 20 basis points (bps) year over year to 12.8%.
The operating margin also contracted 20 bps on a year-over-year basis to 10.5%.
Balance Sheet
As of Jun 30, 2023, cash and cash equivalent and short-term investments were $231.4 million compared with $12.2 million.
Guidance
For the first quarter of fiscal 2024, Fabrinet expects revenues between $650 million and $670 million. Non-GAAP earnings are expected between $1.83 and $1.90 per share.
Zacks Rank & Stocks to Consider
Currently, Fabrinet carries a Zacks Rank #3 (Hold)
FN shares have declined 8.9% year to date, underperforming the Zacks Computer & Technology sector’s increase of 32.8%.
NVIDIA NVDA, NetEase NTES and Workday WDAY are some better-ranked stocks that investors can consider in the Zacks Computer & Technology sector. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While NVIDIA is set to report its quarterly result on Aug 23, both NetEase and Workday are scheduled to report on Aug 24.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
Fabrinet (FN) : Free Stock Analysis Report
