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Fabrinet (FN) Q4 Earnings Top Estimates, Revenues Up Y/Y
Fabrinet (FN - Free Report) 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 - Free Report) , NetEase (NTES - Free Report) and Workday (WDAY - Free Report) 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.