Fabrinet cuts Q3 EPS guidance after $4.2 million charge tied to Amazon warrant
Fabrinet issued a warrant to an affiliate of Amazon.com, Inc. to buy up to 381,922 ordinary shares at $208.4826 per share, under a Transaction Agreement signed March 12, 2025. The company expects a non-cash charge of about $4.2 million to revenue from the warrant, which it says will reduce fully diluted EPS by about $0.12 in the fiscal third quarter ending March 28, 2025, and has revised its GAAP EPS guidance to $2.20 to $2.28.
- Warrant covers up to 381,922 shares at $208.4826 per share and expires March 12, 2032; 38,192 shares vested at issuance
- Expected non-cash revenue adjustment of about $4.2 million, or about $0.12 per diluted share, for the quarter ending March 28, 2025
- Revised guidance: GAAP EPS $2.20 to $2.28; non-GAAP EPS $2.43 to $2.51, both on about 36.3 million fully diluted shares
- Remaining warrant shares vest in tranches based on payments from Amazon or its affiliates under a commercial agreement