NYSE$FN

Fabrinet · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record third quarter revenue exceeding guidance.

Fabrinet announced strong Q3 2023 results, with revenue exceeding guidance and demonstrating operating leverage. While some parts of the business are affected by near-term inventory adjustments, growth from other customer programs and component availability improvements are offsetting the impacts.

  • Revenue for the third quarter of fiscal year 2023 was $665.3 million, compared to $564.4 million for the third quarter of fiscal year 2022.
  • GAAP net income for the third quarter of fiscal year 2023 was $59.4 million, compared to $50.7 million for the third quarter of fiscal year 2022.
  • GAAP net income per diluted share for the third quarter of fiscal year 2023 was $1.60, compared to $1.35 for the third quarter of fiscal year 2022.
  • Non-GAAP net income per diluted share for the third quarter of fiscal year 2023 was $1.94, compared to $1.50 for the third quarter of fiscal year 2022.

Headline financials

Total Revenue

$665M

Previous: $564M+17.9%
EPS (adj)

$1.94

Previous: $1.50+29.3%
Capital Expenditures

-$43.4M

Previous: -$75.3M+42.4%
Free Cash Flow

$15.9M

Previous: -$24.7M+164.6%
Net Income

$59.4M

Previous: $50.7M+17.2%
Operating Income

$61.8M

Previous: $53.7M+15.2%
Gross Profit

$86M

Previous: $70.7M+21.7%
Cash & Equivalents

$231M

Previous: $269M-14.3%
Total Assets

$2.03B

Previous: $1.78B+14.0%
Stock-Based Comp

$6.72M

Previous: $5.72M+17.4%

Revenue & EPS history

Fabrinet · Revenue · Quarterly

$665M

Q3 2023+17.9%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

For the fourth fiscal quarter ending June 30, 2023, Fabrinet expects revenue to be in the range of $630 million to $650 million. GAAP net income per diluted share is expected to be in the range of $1.57 to $1.64, and non-GAAP net income per diluted share is expected to be in the range of $1.76 to $1.83.

Tailwinds

  • Revenue to be in the range of $630 million to $650 million.
  • GAAP net income per diluted share is expected to be in the range of $1.57 to $1.64.
  • 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 $1.76 to $1.83.
  • Based on approximately 37.0 million fully diluted shares outstanding.

Headwinds

  • Growing global economic downturn
  • Continued disruption to our supply chain, which could increase our costs and affect our ability to procure parts and materials
  • Less customer demand for our products and services than forecasted
  • Less growth in the optical communications, industrial lasers and sensors markets than we forecast
  • Difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets

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 Q3 2023

Historical avgQ3 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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