Financial Data and Key Metrics Changes - The company reported revenue of $872 million for Q3 2025, an increase of 19% year-over-year and 5% sequentially [11] - Non-GAAP earnings per share (EPS) was $2.52, exceeding guidance [11][16] - Gross margin was reported at 12%, impacted by contra revenue from a warrant agreement [15][24] Business Line Data and Key Metrics Changes - Optical communications revenue was $657 million, up 11% year-over-year and 2% sequentially [12] - Datacom revenue was $251 million, down 18% year-over-year and 16% sequentially, primarily due to product transitions at a large customer [12][16] - Telecom revenue reached $406 million, up 42% year-over-year and 17% sequentially, driven by strong demand in data center interconnect applications [12][16] - Non-optical communications revenue was $215 million, up 53% year-over-year and 15% sequentially, with automotive revenue increasing by 76% [14][15] Market Data and Key Metrics Changes - The telecom market showed strong growth trends, expected to continue into Q4 2025 [6][17] - The automotive segment experienced outsized growth but may moderate in the near term [7][18] Company Strategy and Development Direction - The company announced a new commercial relationship with Amazon Web Services, expected to boost revenue starting in FY 2026 [7][8] - Expansion plans are on track with Building 10 construction underway to meet long-term capacity needs [9][78] - The company remains optimistic about future growth driven by new product ramps and strong demand in telecom and non-optical communications [17][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute well and maintain a consistent track record of revenue growth [10][17] - The company anticipates continued year-over-year growth in Q4 2025, with revenue guidance between $860 million and $900 million [18] - Management noted that while there may be short-term margin headwinds due to new product ramps, long-term growth drivers remain intact [56][58] Other Important Information - The company repurchased over $100 million worth of shares this fiscal year, reflecting confidence in its financial position [9][16] - Effective GAAP tax rate was reported at 5.8%, with expectations for a mid-single-digit rate for the fiscal year [16] Q&A Session Summary Question: Datacom revenue decline specifics - Management clarified that the decline in Datacom revenue was primarily due to strong growth in the DCI segment, which offset some of the expected decline in 800 gig products [21][22] Question: Gross margin concerns - Management indicated that the $4 million impact from the warrant agreement affected gross margin by about 40 basis points, but this is not expected to recur [23][24] Question: Datacom revenue transition - Management noted that the decline in 800 gig products is more likely due to share allocation rather than inventory issues, with a significant ramp for 1.6 terabit products expected in the second half of the year [30][36] Question: Amazon engagement and margin opportunities - Management expects the relationship with Amazon to expand over time, with multiple product types being ramped, although significant revenue is anticipated in FY 2026 [37][39] Question: Telecom growth sustainability - Management expressed confidence in the sustainability of telecom growth, citing several strong growth factors including new system wins and improving market dynamics [42][44] Question: Tariff impacts - Management reported no material impacts from global tariffs to date, as customers typically handle tariffs under FOB shipping terms [17][75] Question: Building 10 construction timeline - Management confirmed that Building 10 is on track for an 18-month completion timeline, with potential for early production [78][79] Question: Amazon revenue potential - Management indicated that while specific revenue details cannot be disclosed, they are optimistic about the potential for significant revenue growth from Amazon [86][90]

Financial Performance - Q3 revenue reached a record high of $871.8 million[41], exceeding previous guidance - Year-over-year revenue increased by 19%[40] compared to $731.5 million[40] in the same quarter last year, and prior year increased by 10%[40] - Non-GAAP operating margin was 10.2%[41] - Non-GAAP EPS exceeded guidance at $2.52[41] - Net Income (GAAP) is $81.3 million[40] - Net Income (non-GAAP) is $91.2 million[40] Revenue Breakdown - Optical communications revenue for the quarter was $657.2 million[31] - Non-optical communications revenue reached $214.6 million[33] - Automotive revenue contributed $129.5 million[46] - Industrial Laser revenue was $40.5 million[46] Balance Sheet - The company maintains a strong balance sheet with $950.7 million[42] in cash and cash equivalents - Total debt is $0.0 million[42] - Total shareholders' equity is $1,907.2 million[42]

BANGKOK, Thailand – May 5, 2025 – Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its third fiscal quarter ended March 28, 2025. Seamus Grady, Chief Executive Officer of Fabrinet, said, "We had a very strong third quarter with revenue of $872 million dollars, which was above our guidance range. We delivered an ...

Core Insights - Fabrinet reported a strong third quarter with revenue of $872 million, exceeding guidance and reflecting robust telecom performance that offset a decline in datacom revenue [2][7] - The company achieved a GAAP net income of $81.3 million, slightly up from $80.9 million in the same quarter last year, with GAAP net income per diluted share increasing to $2.25 from $2.21 [7][24] - Non-GAAP net income for the quarter was $91.2 million, compared to $87.7 million a year ago, with non-GAAP net income per diluted share rising to $2.52 from $2.39 [7][24] Financial Performance - Revenue for Q3 FY2025 was $871.8 million, a 19.2% increase from $731.5 million in Q3 FY2024 [7] - GAAP net income for Q3 FY2025 was $81.3 million, a marginal increase from $80.9 million in Q3 FY2024 [7] - Non-GAAP net income for Q3 FY2025 was $91.2 million, up from $87.7 million in Q3 FY2024 [7] Earnings Guidance - For Q4 FY2025, Fabrinet expects revenue to be in the range of $860 million to $900 million [7] - GAAP net income per diluted share is projected to be between $2.32 and $2.47, while non-GAAP net income per diluted share is expected to range from $2.55 to $2.70 [7][27] Operational Highlights - The company continues to focus on advanced optical packaging and precision manufacturing services for complex products, serving various sectors including telecommunications, automotive, and medical devices [8] - Fabrinet maintains manufacturing resources in Thailand, the USA, China, and Israel, emphasizing its global operational capabilities [8]

Core Viewpoint - Fabrinet (FN) is expected to report strong fiscal third-quarter results, with anticipated revenues between $850 million and $870 million, reflecting a year-over-year growth of 17.42% [1][2] Revenue Expectations - The Zacks Consensus Estimate for fiscal third-quarter revenues is $858.96 million, indicating a significant increase from the previous year [1] - Telecom revenues are projected to have grown robustly, driven by data center interconnect products and new system wins, following a 24% year-over-year increase in the previous quarter [3] Earnings Projections - Non-GAAP earnings per share are expected to be between $2.55 and $2.63, with the consensus mark for earnings at $2.47 per share, reflecting a 3.35% growth from the prior year [1][2] - Fabrinet has consistently beaten earnings estimates in the past four quarters, with an average surprise of 5.96% [2] Segment Performance - Continued strength in telecom and steady growth in automotive revenues are anticipated to positively impact FN's performance [3] - Datacom revenues are expected to decline slightly due to customer transitions to next-generation products, while automotive revenues are projected to continue their growth trend [4] Margin Insights - The gross margin for the fiscal second quarter was 12.4%, slightly down from 12.7% in the first quarter, influenced by favorable forex conditions [4]

Core Viewpoint - The market anticipates Fabrinet (FN) will report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending March 2025 [1][2]. Earnings Expectations - Fabrinet is expected to post quarterly earnings of $2.47 per share, reflecting a year-over-year increase of +3.4% [3]. - Revenues are projected to reach $858.96 million, which is a 17.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.68% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Fabrinet matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from the consensus estimate, with positive readings being more predictive of earnings beats [7][8]. - Fabrinet's current Zacks Rank is 3 (Hold), making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Fabrinet exceeded the expected earnings of $2.51 per share by delivering $2.61, resulting in a surprise of +3.98% [12]. - Over the past four quarters, Fabrinet has surpassed consensus EPS estimates three times [13]. Industry Context - In the Zacks Electronics - Miscellaneous Components industry, nVent Electric (NVT) is expected to report earnings of $0.66 per share, indicating a year-over-year decline of -14.3% [17]. - nVent's revenue is anticipated to be $788.44 million, down 9.9% from the previous year [17]. - The consensus EPS estimate for nVent has been revised down by 0.4% over the last 30 days, resulting in an Earnings ESP of -0.40% [18].

This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding Innoviz's expectations, plans, and future prospects related to the strategic partnership with Fabrinet, the anticipated scaling of production, the economic benefits of the partnership and Fabrinet's compliance with the highest automotive-grade standards. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipat ...

BANGKOK, April 21, 2025 (GLOBE NEWSWIRE) -- Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced it will release financial results for the third quarter of fiscal year 2025, which ended March 28, 2025, after market close on Monday, May 5, 2025. On that day, management will hold a conference call and webcast at 5:00 p.m. EDT to review and di ...

Company Overview - Fabrinet (FN) shares increased by 4.9% to close at $179.42, following a notable trading volume, contrasting with an 11.8% loss over the past four weeks [1] - The company specializes in assembling optical, electro-mechanical, and electronic devices for other companies [3] Demand and Growth - The optimism surrounding Fabrinet is driven by strong demand for its data center interconnect products and coherent ZR modules [2] - Fabrinet has expanded its manufacturing space by 50% at the Chonburi campus to support long-term growth [2] Financial Performance Expectations - Fabrinet is expected to report quarterly earnings of $2.60 per share, reflecting an 8.8% year-over-year increase [3] - Revenue projections stand at $860.76 million, indicating a 17.7% increase from the same quarter last year [3] Earnings Estimate Trends - The consensus EPS estimate for Fabrinet has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [5] - Empirical research indicates that trends in earnings estimate revisions are closely correlated with near-term stock price movements [4] Industry Context - Fabrinet is part of the Zacks Electronics - Miscellaneous Components industry, where another company, Ballard Power Systems (BLDP), saw a 1.9% increase in its stock price but has returned -14.3% over the past month [5] - Ballard's consensus EPS estimate has decreased by 10.6% over the past month, with a year-over-year change of +14.3% [6]

Core Viewpoint - Fabrinet (FN) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Outlook - The Zacks rating upgrade reflects a positive earnings outlook for Fabrinet, which is expected to lead to increased buying pressure and a rise in stock price [3][5]. - For the fiscal year ending June 2025, Fabrinet is projected to earn $10.31 per share, representing a 16.1% increase from the previous year's reported figure [8]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Fabrinet has increased by 2.9%, indicating a trend of rising earnings estimates [8]. - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making it beneficial to track these revisions for investment decisions [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Fabrinet's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].