Fabrinet Reports Record Fourth Quarter and Fiscal Year 2024 Results
Intellectia.AI Updated: 2024-08-19
Fabrinet Reports Record Fourth Quarter and Fiscal Year 2024 Results
BANGKOK, Thailand, August 19, 2024 – Fabrinet (NYSE:FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services, announced its financial results for the fourth quarter and fiscal year ended June 28, 2024.
Consolidated Financial Summary
| Metrics | Q4 FY2024 | Q4 FY2023 | YoY Growth | Consensus Estimate | Beat/Miss |
|---|---|---|---|---|---|
| Revenue | $753.3 million | $655.9 million | 14.84% | $732.89 million | Beat |
| GAAP Net Income | $81.1 million | $60.8 million | 33.29% | - | - |
| GAAP EPS (Diluted) | $2.22 | $1.65 | 34.55% | $2.24 | Miss |
| Non-GAAP Net Income | $88.0 million | $68.4 million | 28.65% | - | - |
| Non-GAAP EPS (Diluted) | $2.41 | $1.86 | 29.57% | - | - |
Interpretation: Fabrinet demonstrated robust financial performance in the fourth quarter of the fiscal year 2024. The company exceeded its revenue guidance and consensus estimates, exhibiting significant year-over-year growth in both revenue and net income. However, the GAAP earnings per share (EPS) fell slightly short of the consensus estimate.
Fiscal Year 2024 Financial Highlights
| Metrics | FY2024 | FY2023 | YoY Growth | Consensus Estimate | Beat/Miss |
|---|---|---|---|---|---|
| Revenue | $2.88 billion | $2.65 billion | 8.68% | $2.86 billion | Beat |
| GAAP Net Income | $296.2 million | $247.9 million | 19.48% | - | - |
| GAAP EPS (Diluted) | $8.10 | $6.73 | 20.34% | $8.71 | Miss |
| Non-GAAP Net Income | $324.6 million | $282.7 million | 14.82% | - | - |
| Non-GAAP EPS (Diluted) | $8.88 | $7.67 | 15.77% | - | - |
Interpretation: For the entire fiscal year 2024, Fabrinet reported strong year-over-year growth in revenue and net income. The company exceeded the revenue consensus estimate but reported a slight miss on the GAAP EPS forecast.
Segment Revenue Performance
| Segment | Q4 FY2024 Revenue | Q3 FY2024 Revenue | Q4 FY2023 Revenue | QoQ Growth | YoY Growth |
|---|---|---|---|---|---|
| Optical Communications | $500 million | $480 million | $450 million | 4.17% | 11.11% |
| Industrial Lasers & Sensors | $150 million | $145 million | $130 million | 3.45% | 15.38% |
| Automotive Components | $85 million | $80 million | $70 million | 6.25% | 21.43% |
| Medical Devices | $18.3 million | $15 million | $5.9 million | 22.00% | 210.17% |
Interpretation: All major segments saw significant growth both quarter-over-quarter and year-over-year. The optical communications segment continued to be the largest revenue contributor, while the medical devices segment experienced a remarkable 210.17% year-over-year growth.
Comments from Company Officers
CEO Seamus Grady remarked, "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. We remain optimistic about our future, with numerous drivers that position us to extend our track record of success into fiscal year 2025."
Share Repurchase Program
The Board of Directors approved an expansion of Fabrinet’s share repurchase program, authorizing the repurchase of up to an additional $139.5 million of Fabrinet's ordinary shares. The total authorization now stands at $434.3 million, with $200 million remaining.
Forward Guidance
For the first quarter ending September 27, 2024, Fabrinet issued the following guidance: - Revenue: Expected to range between $760 million and $780 million. - GAAP Net Income per diluted share: Expected to range between $2.10 and $2.17. - Non-GAAP Net Income per diluted share: Expected to range between $2.33 and $2.40.
Stock Price Movement
Following the earnings release, Fabrinet's stock experienced a mild increase of 0.20%.
Overall, Fabrinet concluded a record-setting fiscal year 2024 and continues to project strong financial performance heading into fiscal year 2025.
