On August 19, 2024, Fabrinet (FN, Financial) released its 8-K filing announcing its financial results for the fourth quarter and fiscal year ended June 28, 2024. Fabrinet, a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers (OEM), reported record revenue and earnings per share (EPS) that exceeded guidance.
Company Overview
Fabrinet is a United States-based company that provides outsourced manufacturing services to OEMs in complex industries requiring precision manufacturing capabilities. The company offers a wide range of optical and electro-mechanical manufacturing capabilities, helping customers produce various products such as selective switching products, active optical cables, tunable transponders and transceivers, lasers, and sensors. Fabrinet generates the majority of its revenue from North America and Asia-Pacific, with the rest from Europe.
Fourth Quarter Fiscal Year 2024 Financial Highlights
Fabrinet reported robust financial results for the fourth quarter of fiscal year 2024:
- Revenue: $753.3 million, up from $655.9 million in Q4 FY2023
- GAAP net income: $81.1 million, up from $60.8 million in Q4 FY2023
- GAAP net income per diluted share: $2.22, up from $1.65 in Q4 FY2023
- Non-GAAP net income: $88.0 million, up from $68.4 million in Q4 FY2023
- Non-GAAP net income per diluted share: $2.41, up from $1.86 in Q4 FY2023
Fiscal Year 2024 Financial Highlights
For the full fiscal year 2024, Fabrinet achieved the following results:
- Revenue: $2.88 billion, up from $2.65 billion in FY2023
- GAAP net income: $296.2 million, up from $247.9 million in FY2023
- GAAP net income per diluted share: $8.10, up from $6.73 in FY2023
- Non-GAAP net income: $324.6 million, up from $282.7 million in FY2023
- Non-GAAP net income per diluted share: $8.88, up from $7.67 in FY2023
Performance Analysis
Fabrinet's strong performance in the fourth quarter and fiscal year 2024 is significant for several reasons. The company achieved record revenue and earnings per share, surpassing analyst estimates of $2.07 EPS and $732.89 million in revenue for the quarter. This performance underscores Fabrinet's ability to effectively manage its operations and capitalize on market opportunities.
Seamus Grady, Chief Executive Officer of Fabrinet, commented, “Our strong fourth quarter results capped a remarkable fiscal year, representing our fourth quarter in a row of record revenue, and record earnings per share, both of which were above our guidance ranges. We remain optimistic about our future, with numerous drivers that position us to extend our track record of success into fiscal year 2025.”
Financial Achievements and Industry Impact
Fabrinet's financial achievements are crucial for the hardware industry, particularly in the optical and electro-mechanical manufacturing sectors. The company's ability to generate significant revenue and profit growth highlights its competitive edge and operational efficiency. Additionally, the expansion of its share repurchase program, authorizing the repurchase of up to an additional $139.5 million of Fabrinet’s ordinary shares, reflects the company's strong cash flow and commitment to returning value to shareholders.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue | $753.3 million | $655.9 million | $2.88 billion | $2.65 billion |
| GAAP Net Income | $81.1 million | $60.8 million | $296.2 million | $247.9 million |
| GAAP EPS | $2.22 | $1.65 | $8.10 | $6.73 |
| Non-GAAP Net Income | $88.0 million | $68.4 million | $324.6 million | $282.7 million |
| Non-GAAP EPS | $2.41 | $1.86 | $8.88 | $7.67 |
Balance Sheet and Cash Flow
Fabrinet's balance sheet remains strong, with total assets of $2.34 billion as of June 28, 2024, compared to $1.98 billion as of June 30, 2023. The company reported cash and cash equivalents of $409.97 million, up from $231.37 million in the previous year. Net cash provided by operating activities was $413.15 million, a significant increase from $213.31 million in the prior year.
Conclusion
Fabrinet's record-breaking financial performance in the fourth quarter and fiscal year 2024 demonstrates its strong market position
Explore the complete 8-K earnings release (here) from Fabrinet for further details.
