Why Fabrinet Stock Blasted Nearly 16% Higher Today

Optics equipment supplier Fabrinet (NYSE:FN) was quite the double-digit outperformer on the second trading day of the week. Tuesday saw the company's share price skyrocket by nearly 16%, thanks to an earnings report that well outpaced expectations. Fabrinet stock's performance on the day was particularly impressive considering that the S&P 500 index ended in negative territory, closing the day down by 0.2%.

A good way to ring in the new fiscal year

Fabrinet closed out its fiscal 2024 in style, delivering fourth-quarter results that easily topped the average analyst estimates. For the period ended June 28, it took in more than $753 million in revenue, a figure that was 15% higher year over year. Non-GAAP (adjusted) net income leaped even higher, rising by 29% to hit $88 million, or $2.41 per share.

On average, analysts tracking the stock were expecting a notably more modest performance. Collectively, they were modeling less than $733 million on the top line, and only $2.24 per share for adjusted net profit.

In its earnings release, Fabrinet did not fail to mention that the quarter was the fourth frame in a row in which it notched record revenue and earnings-per-share figures.

Fabrinet also said that its board of directors has approved an expansion of the company's existing stock buyback program. The new authorization is for $139.5 million worth of its ordinary shares, which brings the total authorized amount to $434.3 million. Of this figure, $200 million is remaining for repurchases.

Crushing it on guidance, too

Fabrinet also proffered guidance for its current (first) quarter. The company is forecasting that it will earn $760 million to $780 million in revenue, with adjusted net income coming in at $2.33 to $2.40 per share. As with the fourth-quarter results these ranges topped the consensus analyst estimates, which called for nearly $752 million on the top line, and $2.25 for adjusted per-share profitability.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.