Fabrinet, a contract manufacturer of optical components for data centers and 5G networks, posted fourth-quarter earnings that exceeded market expectations, sending its shares higher in after-hours trading.
The company reported adjusted earnings per share of $1.78, up 12% year-over-year and above the $1.65 consensus estimate, according to Refinitiv data. Revenue rose 11% to $684 million, also surpassing the $670 million forecast. Gross margin expanded to 11.8%, up from 11.2% in the same period last year, reflecting improved operational efficiency.
For the current quarter, Fabrinet provided guidance that fell within analysts' expectations, with revenue projected at $690 million to $710 million and adjusted EPS of $1.80 to $1.90. Full-year 2025 revenue guidance was tightened to a range of $2.75 billion to $2.85 billion, up from prior guidance of $2.70 billion to $2.90 billion, signaling confidence in sustained demand despite macroeconomic headwinds.
Analysts highlighted Fabrinet's exposure to high-growth end markets, including artificial intelligence-driven data center expansion and 5G infrastructure rollouts, as key drivers of its outperformance. The company's ability to secure long-term contracts with hyperscale cloud providers has insulated it from near-term volatility, according to industry observers.
Fabrinet's shares were indicated up 3% in extended trading following the results, extending gains from the prior session. The stock has gained approximately 25% over the past 12 months, outperforming the broader tech hardware index.
Investors will monitor upcoming product cycles and potential new customer wins as catalysts for further upside. The company is scheduled to host an earnings call to discuss results and guidance in detail.
