Fabrinet Beats Q2 Expectations, Gives Strong Q3 Guidance

Fabrinet FN reported fiscal second quarter results Monday and surged nearly 4 percent in after hours trading.

Revenue came in at $188.4 million, above estimates of $184.14 million, an increase of 5.5 percent compared to the prior year period.

Non-GAAP net income was $14.4 million, or $0.40 per diluted share, above estimates of $0.38 and a decrease of 10 percent compared to the $0.45 per diluted share reported in the year-ago period.

GAAP net income was $8.7 million, or $0.24 per diluted share, compared to GAAP net income of $14.5 million, or $0.41 per diluted share, in the second quarter of fiscal 2014.

Tom Mitchell, Chief Executive Officer of Fabrinet, said, “Our fiscal second quarter results demonstrate our commitment to profitably growing our business while making key investments for the future. These investments are beginning to bear fruit as we had another quarter of strong revenue growth from new customers.”

The company expected third quarter revenue to be in the range of $181 million to $185 million, above estimates of $169.92 million.

GAAP net income per share is expected to be in the range of $0.27 to $0.29 with expected non-GAAP net income per share of $0.33 to $0.35, based on approximately 36 million fully diluted shares outstanding. Analysts had expected non-GAAP EPS of $0.35.

Fabrinet traded at $17.10 in the after hours session, up 3.89 percent.