Why Fabrinet Stock Popped After-Hours

Fabrinet FN shares are trading higher in the after-hours session Monday after reporting fourth-quarter earnings. Here's a summary of the details.

What To Know: Fabrinet reported quarterly earnings of $1.86 per share which beat the analyst consensus estimate of $1.80. The company reported quarterly sales of $655.87 million which beat the analyst consensus estimate of $641.41 million, a 11.57% increase over sales of $587.87 million the same period last year.

The company issued first-quarter earnings guidance in a range between $1.83 and $1.90 per share, versus the $1.86 estimate. Revenue is anticipated to be between $650 million and $670 million, versus the $657.33 million estimate.

Fabrinet also announced that its Board of Directors has approved the repurchase of up to an additional $47.6 million of Fabrinet's ordinary shares.

Seamus Grady, CEO of Fabrinet, said, "We exceeded our guidance for revenue and earnings per share in the fourth quarter. During the quarter we saw very strong growth in datacom revenue, driven by new AI products, which more than offset anticipated headwinds from inventory adjustments at some customers."

"Our strong fourth quarter results helped produce record performances for revenue, profitability and cash flow in fiscal 2023. As we look to the first quarter of fiscal 2024, we are optimistic that new datacom programs can continue to offset inventory absorption in the industry, and that we can extend our track record of strong execution."

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FN Price Action: Shares of FN were up 13.1% at $132.01 in the after-hours session at the time of publication, according to Benzinga Pro.

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