Fabrinet beats Q1 revenue estimates on strong telecom sector performance
Overview
Fabrinet fiscal Q1 revenue grows to $978 mln, beating analyst expectations
Adjusted EPS for fiscal Q1 beats consensus, driven by telecom and HPC contributions
Company expects fiscal Q2 revenue between $1.05 bln and $1.10 bln
Outlook
Fabrinet expects second-quarter revenue between $1.05 bln and $1.10 bln
Company anticipates GAAP EPS of $2.91 to $3.06 for Q2
Fabrinet forecasts non-GAAP EPS of $3.15 to $3.30 for Q2
Result Drivers
TELECOM PERFORMANCE - Strong telecom sector performance contributed to record Q1 revenue
HPC CONTRIBUTION - Early contributions from High-Performance Computing revenue supported Q1 results
DATACOM REVENUE - Smaller than anticipated sequential decline in datacom revenue helped Q1 results
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $978.1 mln | $933.70 mln (6 Analysts) |
Q1 Adjusted EPS | Beat | $2.92 | $2.82 (7 Analysts) |
Q1 EPS | $2.66 | ||
Q1 Adjusted Net Income | Beat | $105.3 mln | $102.20 mln (5 Analysts) |
Q1 Net Income | $95.9 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Fabrinet is $375.00, about 17.5% below its October 31 closing price of $440.57
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 28 three months ago
Press Release:
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