Fabrinet (NYSE:FN) Releases Earnings Results, Beats Expectations By $0.15 EPS

Key Points

• Fabrinet beat quarterly expectations, reporting earnings of $4.34 per share versus the $4.19 consensus estimate, while revenue reached $1.47 billion compared with expectations of $1.40 billion.
• Shares fell 4.1% to $313.86 during Monday trading, with the stock near its 52-week low of $305.63 and substantially below its 52-week high of $748.89.
• Analyst sentiment remains generally positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $626.12, despite one recent downgrade and lowered targets from Needham.

Fabrinet (NYSE:FN - Get Free Report) issued its quarterly earnings results on Monday. The technology company reported $4.34 earnings per share for the quarter, beating analysts' consensus estimates of $4.19 by $0.15, FiscalAI reports. Fabrinet had a return on equity of 21.23% and a net margin of 10.19%. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.40 billion.

Fabrinet Trading Down 4.1%

Shares of Fabrinet stock traded down $13.44 during mid-day trading on Monday, reaching $313.86. 1,483,936 shares of the stock were exchanged, compared to its average volume of 862,519. The company has a market cap of $11.25 billion, a price-to-earnings ratio of 24.05 and a beta of 1.35. The firm has a 50-day simple moving average of $404.52 and a 200 day simple moving average of $522.32. Fabrinet has a fifty-two week low of $305.63 and a fifty-two week high of $748.89.

Insider Buying and Selling

In other news, EVP Edward Archer sold 2,500 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $385.91, for a total transaction of $964,775.00. Following the completion of the sale, the executive vice president owned 7,007 shares of the company's stock, valued at approximately $2,704,071.37. This trade represents a 26.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.22% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on FN shares. Rosenblatt Securities reiterated a "buy" rating and set a $750.00 price target on shares of Fabrinet in a report on Tuesday, August 18th. Fox Advisors raised Fabrinet from an "equal weight" rating to an "overweight" rating in a research report on Wednesday, August 19th. Needham & Company LLC decreased their target price on Fabrinet from $650.00 to $500.00 and set a "buy" rating for the company in a research note on Tuesday, October 27th. Zacks Research raised Fabrinet from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. Finally, Weiss Ratings downgraded Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 9th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Fabrinet currently has an average rating of "Moderate Buy" and an average price target of $626.12.

About Fabrinet

Fabrinet NYSE: FN is a provider of outsourced manufacturing services for complex optical, electronic and electromechanical products. The company works with original equipment manufacturers and other technology companies to design, manufacture, assemble, test and distribute products used in optical communications, industrial lasers, automotive applications, medical devices and other advanced technology markets.

Its capabilities include precision optical packaging, optical and electronic assembly, printed circuit board assembly, electromechanical manufacturing, engineering support, supply-chain management and testing.

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