Fabrinet (NYSE:FN) stock was some 18% higher in Tuesday’s early premarket trade after the manufacturer's fourth-quarter earnings beat expectations, driven by new artificial intelligence (AI) products that saw strong growth.
Trading at US$138, the stock was up US$21.22 or 18.17% in early trading.
The provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products reported 4Q earnings per share (EPS) of $1.86, up from $1.68 in the year-ago quarter and ahead of the Street estimate of $1.80.
Revenue rose from $587.9 million to $655.9 million, topping estimates of $641.9 million.
“During the quarter we saw very strong growth in datacom revenue, driven by new AI products, which more than offset anticipated headwinds from inventory adjustments at some customers,” Fabrinet CEO Seamus Grady said.
“Our strong fourth-quarter results helped produce record performances for revenue, profitability and cash flow in fiscal 2023.”
The company’s full-year 2023 earnings and sales also topped expectations.
EPS increased from $6.13 to $7.67, compared to the Street estimate of $7.61.
Revenue rose from $2.26 billion for fiscal 2022 to $2.65 billion, above the forecast $2.63 billion.
Fabrinet shares had added 12.1% at US$130.94 shortly after the release of its earnings.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie