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Fabrinet Beats on Both Top and Bottom Lines

Tuesday - 4/30/2013, 2:00am  ET

Fabrinet reported earnings on April 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q3), Fabrinet beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.

Gross margins shrank, operating margins expanded, net margins grew.

Revenue details
Fabrinet logged revenue of $155.6 million. The five analysts polled by S&P Capital IQ anticipated revenue of $151.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $139.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.33. The six earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.33 for Q3 were 18% higher than the prior-year quarter's $0.28 per share. GAAP EPS were $0.61 for Q3 versus -$1.35 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.4%, 30 basis points worse than the prior-year quarter. Operating margin was 6.1%, 10 basis points better than the prior-year quarter. Net margin was 13.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $150.1 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $631.7 million. The average EPS estimate is $1.36.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 24 members out of 29 rating the stock outperform, and five members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Fabrinet a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fabrinet is outperform, with an average price target of $17.40.

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This article was originally published as Fabrinet Beats on Both Top and Bottom Lineson Fool.com

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