Fabrinet (FN) Misses Q1 EPS by 5c, Slight Miss on Revenues; Offers 1Q18 EPS/Revenue Outlook Well Below Consensus

Fabrinet (NYSE: FN) reported Q1 EPS of $0.75, $0.05 worse than the analyst estimate of $0.80. Revenue for the quarter came in at $357.3 million versus the consensus estimate of $358.62 million.

First Quarter Fiscal Year 2018 Financial Highlights

GAAP Results

• Revenue for the first quarter of fiscal year 2018, a 13-week quarter, was $357.3 million, an increase of 8% compared to revenue of $332.0 for the comparable period in fiscal year 2017, a 14-week quarter.
• GAAP net income for the first quarter of fiscal year 2018 was $21.0 million, compared to GAAP net income of $22.8 million for the first quarter of fiscal year 2017. GAAP net income for the first quarter of fiscal year 2018 included a foreign exchange loss of $1.9 million, or $0.05 per diluted share.
• GAAP net income per diluted share for the first quarter of fiscal year 2018 was $0.55, compared to GAAP net income per diluted share of $0.61 for the first quarter of fiscal year 2017.

Non-GAAP Results

• Non-GAAP net income for the first quarter of fiscal year 2018 was $28.6 million, compared to non-GAAP net income of $29.7 million for the same period a year ago.
• Non-GAAP net income per diluted share for the first quarter of fiscal year 2018 was $0.75, a decrease from non-GAAP net income per diluted share of $0.80 for the same period a year ago. Non-GAAP net income for the first quarter of fiscal year 2018 included a foreign exchange loss of $1.9 million, or $0.05 per diluted share.

Business Outlook

Based on information available as of November 6, 2017, Fabrinet is issuing guidance for its second fiscal quarter ending December 29, 2017, as follows:

• Fabrinet expects second quarter revenue to be in the range of $328 million to $332 million.
• GAAP net income per diluted share is expected to be in the range of $0.43 to $0.45, based on approximately 38.2 million fully diluted shares outstanding.
• Non-GAAP net income per diluted share is expected to be in the range of $0.69 to $0.71, based on approximately 38.2 million fully diluted shares outstanding.

GUIDANCE:

Fabrinet sees Q2 2018 EPS of $0.69-$0.71, versus the consensus of $0.85. Fabrinet sees Q2 2018 revenue of $328-332 million, versus the consensus of $373.93 million.

For earnings history and earnings-related data on Fabrinet (FN) click here.

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