The 10-second takeaway
For the quarter ended Dec. 28 (Q2), Fabrinet beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Margins grew across the board.
Fabrinet reported revenue of $167.4 million. The five analysts polled by S&P Capital IQ hoped for revenue of $161.1 million on the same basis. GAAP reported sales were 73% higher than the prior-year quarter's $96.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The five earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. GAAP EPS were $0.48 for Q2 versus -$0.97 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.0%, 180 basis points better than the prior-year quarter. Operating margin was 7.5%, 380 basis points better than the prior-year quarter. Net margin was 10.0%, 4,440 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $161.9 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $650.3 million. The average EPS estimate is $1.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 23 members out of 28 rating the stock outperform, and five members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Fabrinet a green thumbs-up, and two 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 $15.60.
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