Fabrinet (FN), a leading provider of advanced optical packaging and precision manufacturing services, recently announced its financial results for the fourth quarter and fiscal year 2024, ending June 28, 2024. The company reported record-breaking revenues and earnings per share (EPS), exceeding its guidance for the fourth consecutive quarter. 

Key Insights from Fabrinet’s Q4 Reports: 

Below are the key findings from Fabrinet’s Q4 earnings.

• Q4 Revenue: Fabrinet reported Q4 2024 revenue of $753.3 million, a significant increase from $655.9 million in Q4 2023.
• GAAP Net Income: Q4 2024 GAAP net income was $81.1 million, up from $60.8 million in Q4 2023.
• GAAP EPS: GAAP net income per diluted share for Q4 2024 rose to $2.22, compared to $1.65 in Q4 2023.
• Non-GAAP Net Income: Non-GAAP net income for Q4 2024 was $88.0 million, an increase from $68.4 million in Q4 2023.
• Fiscal Year 2024 Revenue: Total revenue for fiscal year 2024 was $2.88 billion, up from $2.65 billion in fiscal year 2023.
• Share Repurchase Program: Fabrinet expanded its share repurchase program, authorizing an additional $139.5 million, bringing total authorization to $434.3 million.

Stock Target Advisor’s Analysis on Fabrinet: 

Stock Target Advisor’s analysis of Fabrinet paints a very bullish picture, highlighting three positive signals with no negative signals. According to the analysis, the average target price for Fabrinet over the next 12 months is $216.14, with a “Buy” rating from analysts. Notably, Fabrinet’s stock has seen a remarkable 98.28% increase over the past year, reflecting its superior risk-adjusted returns and top-quartile earnings and revenue growth compared to sector peers.

Stock Target Advisor also emphasizes Fabrinet’s superior revenue and earnings growth over the past five years, which has placed the company in the top quartile within its sector. This strong growth trajectory, coupled with a well-executed business strategy, supports the very bullish outlook on Fabrinet’s stock.

Stock Outlook After Quarterly Result: 

The strong financial performance reported by Fabrinet in Q4 2024 is likely to sustain the positive momentum in its stock price. The expansion of the share repurchase program is an additional positive factor that could provide further support to the stock price by reducing the number of shares outstanding, thereby increasing EPS.

Analysts have set an average target price of $216.14 for Fabrinet, with some targets reaching as high as $240. This suggests potential for continued appreciation in the stock price, particularly if the company can maintain its growth trajectory in fiscal year 2025. However, it is worth noting that the stock price has already seen significant gains over the past year, which may limit the upside potential in the near term.

Conclusion: 

Fabrinet’s Q4 and fiscal year 2024 financial results highlight the company’s strong operational performance and strategic execution. Investors should consider Fabrinet as a solid investment opportunity, particularly in light of its impressive track record and optimistic outlook for fiscal year 2025.