Fabrinet
The 10-second takeaway
For the quarter ended Sep. 28 (Q1), Fabrinet beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins grew.
Revenue details
Fabrinet booked revenue of $158.6 million. The five analysts polled by S&P Capital IQ expected sales of $146.4 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $186.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.36. The five earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.46 for Q1 were 2.2% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 11.2%, 110 basis points worse than the prior-year quarter. Operating margin was 10.5%, 180 basis points better than the prior-year quarter. Net margin was 10.1%, 170 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $153.7 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $627.0 million. The average EPS estimate is $1.41.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 25 members out of 30 rating the stock outperform, and five members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Fabrinet a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fabrinet is outperform, with an average price target of $15.30.
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