Fabrinet (FN) Tops Q2 EPS by 7c, Revenues Beat; Offers Q3 EPS/Revenue Mid-Point Guidance Below Consensus

Fabrinet (NYSE: FN) reported Q2 EPS of $1.00, $0.07 better than the analyst estimate of $0.93. Revenue for the quarter came in at $426.2 million versus the consensus estimate of $413.21 million.

Non-GAAP Results

• Non-GAAP net income for the second quarter of fiscal year 2020 was $37.7 million, compared to non-GAAP net income of $36.5 million for the second quarter of fiscal year 2019. Non-GAAP net income for the second quarter of fiscal year 2020 included a foreign exchange loss of $1.0 million, or $0.03 per diluted share, compared to a foreign exchange loss of $0.4 million, or $0.01 per diluted share, for the second quarter of fiscal year 2019.
• Non-GAAP net income per diluted share for the second quarter of fiscal year 2020 was $1.00, compared to non-GAAP net income per diluted share of $0.97 for the same period a year ago.

Seamus Grady, Chief Executive Officer of Fabrinet, said, “Our second quarter revenue and earnings exceeded our guidance ranges. Sequential growth across nearly all our markets resulted in a record quarterly revenue performance. We expect to see continued year-over-year growth in the third quarter, even after considering the impact of the coronavirus outbreak in our guidance. From a longer-term perspective, our ongoing market momentum makes us very optimistic about our ability to continue to drive profitable growth and reinforce our leadership position in the market.”

GUIDANCE:

Fabrinet sees Q3 2020 EPS of $0.92-$0.95, versus the consensus of $0.95. Fabrinet sees Q3 2020 revenue of $410-418 million, versus the consensus of $414.21 million.

Based on information available as of February 3, 2020, Fabrinet is issuing guidance for its third fiscal quarter of 2020 ending March 27, 2020, as follows:

• Fabrinet expects third quarter revenue to be in the range of $410 million to $418 million.
• GAAP net income per diluted share is expected to be in the range of $0.75 to $0.78, based on approximately 37.9 million fully diluted shares outstanding.
• Non-GAAP net income per diluted share is expected to be in the range of $0.92 to $0.95, based on approximately 37.9 million fully diluted shares outstanding.

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

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