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For the fiscal fourth quarter, revenues are expected in the range of $720-$740 million.
Non-GAAP earnings are anticipated to be between $2.20 and $2.27 per share.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $734.55 million, suggesting 12% growth from the figure reported in the year-ago quarter.
The consensus mark for earnings is pegged at $2.25 per share. Up by a penny in the past 30 days, suggesting 20.97% growth from the figure reported in the year-ago quarter.
Fabrinet’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 6.25%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to note
Fabrinet’s performance in the fiscal fourth quarter is likely to have benefited from the increased demand for datacom and recovery in automotive.
The company expects slight sequential growth in datacom revenues in the fourth quarter of fiscal 2024, driven primarily by high data rate products for AI applications. The demand for 800 gig technology is particularly strong, reflecting ongoing momentum in the market segment.
After experiencing a small decline in the third quarter due to near-term inventory absorption, automotive revenues are expected to have increased sequentially in the to-be-reported quarter. This upside is expected as inventory issues subside, facilitating a rebound in automotive products demand.
Products rated at 400 gigs and faster are expected to have continued dominating growth, supporting the overall revenue increase. These high data rate products are crucial for AI applications, which are seeing robust demand.
However, the company expects a sequential decline in telecom revenues due to continued industry-wide inventory absorption impacting traditional telecom product demand. This ongoing challenge could offset some of the gains from other segments.
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 +0.89% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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Fabrinet (FN) to Report Q4 Earnings: What's in the Cards?
Fabrinet (FN - Free Report) is slated to release fourth-quarter fiscal 2024 results on Aug 19.
For the fiscal fourth quarter, revenues are expected in the range of $720-$740 million.
Non-GAAP earnings are anticipated to be between $2.20 and $2.27 per share.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $734.55 million, suggesting 12% growth from the figure reported in the year-ago quarter.
Fabrinet Price and EPS Surprise
Fabrinet price-eps-surprise | Fabrinet Quote
The consensus mark for earnings is pegged at $2.25 per share. Up by a penny in the past 30 days, suggesting 20.97% growth from the figure reported in the year-ago quarter.
Fabrinet’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 6.25%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to note
Fabrinet’s performance in the fiscal fourth quarter is likely to have benefited from the increased demand for datacom and recovery in automotive.
The company expects slight sequential growth in datacom revenues in the fourth quarter of fiscal 2024, driven primarily by high data rate products for AI applications. The demand for 800 gig technology is particularly strong, reflecting ongoing momentum in the market segment.
After experiencing a small decline in the third quarter due to near-term inventory absorption, automotive revenues are expected to have increased sequentially in the to-be-reported quarter. This upside is expected as inventory issues subside, facilitating a rebound in automotive products demand.
Products rated at 400 gigs and faster are expected to have continued dominating growth, supporting the overall revenue increase. These high data rate products are crucial for AI applications, which are seeing robust demand.
However, the company expects a sequential decline in telecom revenues due to continued industry-wide inventory absorption impacting traditional telecom product demand. This ongoing challenge could offset some of the gains from other segments.
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 +0.89% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Affirm’s shares have plunged 42.3% year to date. AFRM is set to release fourth-quarter 2024 results on Aug 28.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #2 at present
American Eagle Outfitters’ shares have inched up 0.2% year to date. AEO is scheduled to release second-quarter 2024 results on Aug 29.
Snowflake (SNOW - Free Report) has an Earnings ESP of +9.68% and a Zacks Rank #3 at present.
Snowflake’s shares have plunged 36.1% year to date. SNOW is set to release second-quarter fiscal 2025 results on Aug 21.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.