NYSE$FN

Fabrinet · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported record second quarter revenue and operating margins due to strong execution.

Fabrinet announced strong second quarter results with revenue exceeding guidance and record operating margins, effectively managing a dynamic supply environment.

  • Second quarter revenue reached a record $668.7 million, surpassing previous guidance.
  • GAAP net income was $63.2 million, or $1.71 per diluted share.
  • Non-GAAP net income was $70.0 million, or $1.90 per diluted share.
  • The company is managing supply chain challenges effectively, with improvements in component availability for some products.

Headline financials

Total Revenue

$669M

Previous: $567M+18.0%
EPS (adj)

$1.90

Previous: $1.50+26.7%
Capital Expenditures

-$23.6M

Previous: -$51.9M+54.5%
Free Cash Flow

$39.5M

Previous: -$3.04M+1400.7%
Net Income

$63.2M

Previous: $48.9M+29.2%
Operating Income

$66.3M

Previous: $51.4M+28.8%
Gross Profit

$85.2M

Previous: $69.4M+22.8%
Cash & Equivalents

$251M

Previous: $277M-9.3%
Total Assets

$1.97B

Previous: $1.75B+12.4%
Stock-Based Comp

$6.78M

Previous: $6.69M+1.3%

Revenue & EPS history

Fabrinet · Revenue · Quarterly

$669M

Q2 2023+18%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Fabrinet expects revenue between $640 million and $660 million, GAAP net income per diluted share between $1.59 and $1.66, and non-GAAP net income per diluted share between $1.86 and $1.93 for the third quarter ending March 31, 2023.

Tailwinds

  • Revenue to be in the range of $640 million to $660 million.
  • GAAP net income per diluted share is expected to be in the range of $1.59 to $1.66.
  • Based on approximately 37.0 million fully diluted shares outstanding.
  • Non-GAAP net income per diluted share is expected to be in the range of $1.86 to $1.93.
  • Excludes share-based compensation expenses and certain non-recurring items.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+2.5%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+4.5%

Avg return

30 days after

54%

34 / 63 earnings

Positive

+34.4%

Q1 2013

Best reaction

-18.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-5.8%-13.3%-0.3%
Q2 2026-10.3%+0.9%+9.0%
Q1 2026+3.9%+1.4%+6.5%
Q3 2025-7.0%-8.3%+7.4%
Q2 2025-8.2%-6.0%-18.6%
Q1 2025-5.1%+11.8%-0.3%
Q4 2024+16.0%+15.7%-0.9%
Q3 2024+16.8%+24.3%+35.4%
Q2 2024-18.4%-8.5%+0.6%
Q1 2024+5.5%+3.2%+0.0%
Q4 2023+30.4%+33.0%+30.5%
Q3 2023-0.5%-1.3%+20.8%
Q2 2023-8.4%-7.7%-8.8%
Q1 2023+8.6%+12.6%+13.9%
Q4 2022+15.0%+12.8%+2.1%
Q3 2022-4.6%-9.0%-12.1%
Q2 2022-7.1%-8.8%-8.3%
Q1 2022+15.8%+25.4%+19.1%
Q4 2021+6.4%+14.7%+17.9%
Q3 2021-0.8%-0.4%+6.1%
Q2 2021+6.1%+13.1%+10.7%
Q1 2021+6.1%+10.8%+15.5%
Q4 2020-0.5%-5.4%-14.9%
Q3 2020-2.7%+2.9%+11.4%
Q2 2020+7.4%+2.3%-5.8%
Q1 2020-1.5%+0.6%+1.8%
Q4 2019-16.4%-14.4%-2.0%
Q3 2019-3.7%-5.2%-27.9%
Q2 2019-8.6%-9.9%-4.3%
Q1 2019+7.4%+9.9%+12.1%
Q4 2018+7.1%+9.6%+3.7%
Q3 2018+9.4%+9.4%+13.1%
Q2 2018+20.0%+18.1%+29.5%
Q1 2018-10.4%-3.5%-4.6%
Q4 2017-7.8%-3.9%-8.2%
Q3 2017+12.3%+8.3%+17.5%
Q2 2017+1.6%+6.1%-2.7%
Q1 2017+7.6%+8.9%+8.1%
Q4 2016-2.0%-1.5%+1.9%
Q3 2016+12.6%
Q2 2016+12.5%
Q1 2016+9.5%
Q4 2015+6.7%
Q3 2015+1.5%
Q2 2015+3.1%
Q1 2015-3.8%
Q4 2014+9.1%
Q3 2014-13.0%
Q2 2014-8.0%
Q1 2014+13.8%
Q4 2013+4.6%
Q3 2013+1.7%
Q2 2013+10.3%
Q1 2013+34.4%
Q4 2010-0.8%
Q4 2012-2.5%
Q3 2011-6.9%
Q3 2012-8.2%
Q2 2011+1.5%
Q2 2012+5.0%
Q4 2011-1.5%
Q1 2011-1.5%
Q1 2012+1.6%
Q3 2010

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