Fabrinet (FN) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $753.3 million, up 15% year-over-year, surpassing guidance, and marking the fourth consecutive quarter of record revenue and EPS.

• Non-GAAP EPS reached $2.41, exceeding guidance and setting a new quarterly record.

• Full-year revenue was $2.9 billion, up 9% from fiscal 2023, with non-GAAP EPS of $8.88, a 16% increase year-over-year.

• Maintains strong relationships with leading OEMs and a global manufacturing footprint, focusing on high-mix, mission-critical manufacturing.

• Optimism expressed for continued growth into fiscal year 2025.

Financial highlights

• Q4 Optical Communications revenue was $596 million (79% of total), up 19% year-over-year.

• Datacom revenue in Q4 was $315 million, up 63% year-over-year; telecom revenue was $282 million, down 1% sequentially.

• Products rated at 800 gig and faster contributed $259 million in Q4, up 54% year-over-year.

• Non-optical communications revenue reached $157 million in Q4, up 2% year-over-year and 12% sequentially, driven by automotive.

• Q4 non-GAAP gross margin was 12.5%; operating margin was 10.7%; non-GAAP net income was $88 million.

Outlook and guidance

• Q1 FY25 revenue expected between $760 million and $780 million, with sequential growth in all major product areas.

• Q1 EPS guidance is $2.33–$2.40, factoring in seasonal merit increases and FX headwinds.

• Anticipates continued Datacom growth, telecom recovery, and automotive/laser revenue increases.