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Dec 30, 2022

Fabrinet Q2 2023 Earnings Report

Reported record second quarter revenue and operating margins due to strong execution.

Key Takeaways

Fabrinet announced strong second quarter results with revenue exceeding guidance and record operating margins, effectively managing a dynamic supply environment.

Second quarter revenue reached a record $668.7 million, surpassing previous guidance.

GAAP net income was $63.2 million, or $1.71 per diluted share.

Non-GAAP net income was $70.0 million, or $1.90 per diluted share.

The company is managing supply chain challenges effectively, with improvements in component availability for some products.

Total Revenue
$669M
Previous year: $567M
+18.0%
EPS
$1.9
Previous year: $1.5
+26.7%
Gross Profit
$85.2M
Previous year: $69.4M
+22.8%
Cash and Equivalents
$251M
Previous year: $277M
-9.3%
Free Cash Flow
$31.1M
Previous year: $1.26M
+2362.8%
Total Assets
$1.97B
Previous year: $1.75B
+12.4%

Fabrinet

Fabrinet

Forward Guidance

Fabrinet expects revenue between $640 million and $660 million, GAAP net income per diluted share between $1.59 and $1.66, and non-GAAP net income per diluted share between $1.86 and $1.93 for the third quarter ending March 31, 2023.

Positive Outlook

  • Revenue to be in the range of $640 million to $660 million.
  • GAAP net income per diluted share is expected to be in the range of $1.59 to $1.66.
  • Based on approximately 37.0 million fully diluted shares outstanding.
  • Non-GAAP net income per diluted share is expected to be in the range of $1.86 to $1.93.
  • Excludes share-based compensation expenses and certain non-recurring items.