What happened
Shares of Fabrinet(NYSE: FN) jumped on Tuesday. As of 11:20 a.m. ET, the stock was up more than 13%.
The maker of optical and electro-mechanical components saw its stock rise after the company reported stronger-than-expected fiscal fourth-quarter results. The tech company's top and bottom lines for the period ended June 24 were both ahead of analysts forecasts. Helping drive even more optimism, Fabrinet provided strong guidance for the current quarter and approved an expansion to its share repurchase program.
So what
On Monday evening, Fabrinet reported revenue of about $588 million for the quarter, up from $510 million in the year-ago period. Adjusted earnings per share were $1.68, up from $1.31 in the year-ago period. Analysts, on average, were expecting earnings per share of $1.54 and revenue of $581.5 million.
Now what
It's likely that Fabrinet's guidance also played a key role in the stock's jump on Tuesday. Management guided for fiscal first-quarter revenue to be between $620 million and $640 million. The consensus analyst forecast was much lower, at $596 million. Fabrinet's outlook is for the quarter's adjusted earnings per share to be between $1.72 and $1.79, also well ahead of a consensus forecast for $1.56.
"With strong ongoing demand trends, we are optimistic that we can continue to execute well and extend our track record of success in fiscal 2023 and beyond," said Fabrinet CEO Seamus Grady in the company's earnings release.
Given the company's momentum, Fabrinet's board approved a $78.7 million expansion to its repurchase program. This puts the total remaining amount of the authorized repurchase program at $100 million.
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