Fabrinet Reports 51% Revenue Growth Amid Negative Free Cash Flow
Fabrinet (FN) reported a strong fiscal first quarter with revenue surging 51% to approximately $1.47 billion, exceeding the company's previous guidance. Despite this top-line success and an increase in operating income, GAAP earnings growth was tempered by a new global minimum tax charge and a loss on a private stake. The rapid scaling has resulted in significant cash outflows, with free cash flow turning negative at $137 million due to heavy investments in inventory and factory capacity. Capital spending more than tripled to roughly $159 million as the company prepares for increased demand. Looking ahead, management provided optimistic second-quarter revenue guidance of $1.6 billion to $1.65 billion. Investors are closely monitoring whether operating cash flow will recover as new programs begin shipping and customer payments arrive.
Tickers: $FN
Topics: earnings report fiscal results free cash flow revenue growth
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Part of the story Fabrinet Reports 51% Year-Over-Year Revenue Growth Driven by Data Center Demand (7 articles)