Optical packaging provider Fabrinet's Q2 revenue beats estimates

Overview

• Optical packaging provider's fiscal Q2 revenue rose, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company expects strong Q3 revenue and EPS, reflecting continued business drivers

Outlook

• Fabrinet expects third quarter revenue between $1.15 bln and $1.20 bln

• Company anticipates GAAP EPS of $3.22 to $3.37 for third quarter

• Fabrinet forecasts non-GAAP EPS of $3.45 to $3.60 for third quarter

Result Drivers

• STRATEGIC PROGRAMS - Multiple large strategic programs contributed to record revenue and earnings

• OPERATING LEVERAGE - Strong operating leverage led to record earnings per share, exceeding guidance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Fabrinet is $545.00, about 11.4% above its January 30 closing price of $489.44

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nGNX5txhGg

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