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Fabrinet (FN) to Report Q4 Earnings: What's in the Cards?

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Fabrinet (FN - Free Report) is slated to release fourth-quarter fiscal 2022 results on Aug 15.

For the fiscal fourth quarter, revenues are expected in the range of $570-$590 million.

Non-GAAP earnings are anticipated between $1.52 per share and $1.59 per share..

The Zacks Consensus Estimate for fiscal fourth quarter revenues is pegged at $581.11 million, suggesting 14.04% growth from the figure reported in the year-ago quarter.

The consensus mark for earnings has been steady at $1.55 per share in the past 30 days, suggesting 18.32% growth from the figure reported in the year-ago quarter.

Fabrinet’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an earnings surprise of 4.12%, on average.

Let’s see how things have shaped up for the upcoming announcement.

Fabrinet Price and EPS Surprise

Fabrinet Price and EPS Surprise

Fabrinet price-eps-surprise | Fabrinet Quote

Factors Likely to Have Impacted Q4 Performance

Fabrinet’s performance in the fiscal fourth quarter is likely to have been impacted by a delay of certain customer programs due to component requalification efforts. This is expected to have affected datacom revenues in particular, as this was the area most adversely impacted by the component requalifications in the fiscal third quarter and is expected to have continued in the to-be-reported period too.

Supply-chain constraints are still persistent globally, due to the Russia-Ukraine war and the lockdown in Shanghai, China. This is expected to have hurt Fabrinet’s top line in the fiscal fourth quarter. FN expects a negative impact of $30-$35 million in the said period due to supply-chain disturbances.

However, FN is expected to have benefited from capacity expansion with the new one million square foot building on the Chonburi campus.

The new building expands the total footprint of the company by approximately 50% to more than three million square feet, which will provide Fabrinet with ample capacity to meet certain backlogs created by rising demand from new and existing customers.

What Our Model Says

The Zacks model predicts that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Fabrinet has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

BJ’s Wholesale Club (BJ - Free Report) has an Earnings ESP of +17.79% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s shares have returned 3.9% in the year-to-date period compared with the Zacks Consumer Services - Miscellaneous industry’s decline of 7.2%.

Intuit (INTU - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 2.

Intuit’s shares have slumped 25.6% in the year-to-date period compared with the Zacks Computer - Software industry’s decline of 17.2%.

Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +1.23% and is Zacks #2 Ranked.

KEY’s shares have dropped 19.3% in the year-to-date period compared with the Zacks Electronics - Measuring Instruments industry’s decline of 21%.

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