Fabrinet Tops September-Quarter Goals, Guides Above Views

Contract electronics manufacturer Fabrinet (FN) late Monday beat Wall Street’s targets for its fiscal first quarter and with its guidance for the current period. FN stock rose in extended trading.

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The Bangkok-based manufacturer earned an adjusted $2 a share on sales of $685.5 million in the quarter ended Sept. 29. Analysts polled by FactSet had expected Fabrinet earnings of $1.85 a share on sales of $659 million. On a year-over-year basis, Fabrinet earnings rose 2% while sales increased 5%.

For the current quarter, Fabrinet predicted adjusted earnings of $2.02 a share on sales of $690 million. That’s based on the midpoint of its outlook. Wall Street was modeling earnings of $1.93 a share on sales of $681 million for the fiscal second quarter. In the year-earlier period, Fabrinet earned an adjusted $1.90 a share on sales of $669 million.

“We had a very strong start to the year with revenue and net income per share that were above our guidance ranges, and also marked new quarterly records,” Chief Executive Seamus Grady said in a news release.

He added, “Industry-wide inventory adjustments continue to affect certain programs, but these declines were more than offset by quickly ramping new programs.”

FN Stock Rises After Report

In after-hours trading on the stock market today, FN stock advanced 1.9% to 164.59. During the regular session Monday, FN stock fell 0.6% to close at 161.59.

On Aug. 22, FN stock jumped nearly 32% after posting better-than-expected fiscal fourth-quarter results. With the move, it broke out of a flat base with a buy point of 134.95, according to IBD MarketSmith charts.

In its fiscal Q1, Fabrinet derived 78% of its revenue from the optical communications market. The remaining 22% of its business came from automotive, industrial laser and other markets.

Fabrinet Is On Tech Leaders List

Fabrinet is a leading provider of advanced optical packaging and precision optical, electromechanical and electronic manufacturing services to original equipment manufacturers. The company has gotten a revenue boost lately from making high-speed networking gear for AI-focused data centers.

Fabrinet ranks first out of 15 stocks in IBD’s Electronics-Contract Manufacturing industry group, according to IBD Stock Checkup. FN stock has an IBD Composite Rating of 98 out of 99.

Further, FN stock is on the IBD Tech Leaders list.

Industry peer Sanmina (SANM) also posted September-quarter results late Monday. However, the San Jose, Calif.-based electronics manufacturing service missed Wall Street’s estimates for its fiscal fourth quarter ended Sept. 30 and guided much lower than views for the current period. Sanmina stock tumbled 10% on the news.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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