Fabrinet (NYSE:FN) shares are trading lower premarket on Tuesday after it reported second-quarter results on Monday.
Revenue was $833.6 million, beating the consensus of $814.3 million. Adjusted EPS of $2.61 exceeded the consensus of $2.50.
Seamus Grady, Chief Executive Officer of Fabrinet, said, “Our telecom performance was very strong and benefited from both increasing demand for datacenter interconnect products as well as early progress from recent systems wins.”
”While datacom demand has slightly moderated near-term we continue to anticipate more rapid growth as next-generation products ramp production. With several positive trends, we are very optimistic as we look to the third quarter and beyond.”
As of December 27, 2024, cash and cash equivalents stood at $934.6 million.
Buyback: The Board of Directors approved an expansion of its share repurchase program, authorizing the buyback of up to an additional $100 million in ordinary shares.
This increase raises the total authorization under the existing repurchase program to $534.3 million.
Outlook: Fabrinet expects third-quarter FY25 revenue of $850 million – $870 million, surpassing street view of $825.72 million.
The company also projects adjusted EPS of $2.55 – $2.63 vs. street view of $2.55.
Investors can gain exposure to the stock via Vanguard Russell 2000 Growth ETF (NASDAQ:VTWG) and iShares Russell 2000 Growth ETF (NYSE:IWO).
Price Action: FN shares are down 9.77% at $203.55 premarket at the last check Tuesday.
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