Fabrinet
The 10-second takeaway
For the quarter ended June 29 (Q4), Fabrinet met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Revenue details
Fabrinet chalked up revenue of $142.8 million. The five analysts polled by S&P Capital IQ predicted sales of $141.5 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $190.3 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 $0.31. The five earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.22 for Q4 were 54% lower than the prior-year quarter's $0.48 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 10.7%, 190 basis points worse than the prior-year quarter. Operating margin was 7.2%, 200 basis points worse than the prior-year quarter. Net margin was 5.2%, 350 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $147.0 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $629.4 million. The average EPS estimate is $1.45.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 24 members out of 28 rating the stock outperform, and four members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven 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 $17.38.
- Add Fabrinet to My Watchlist.
