Fabrinet (NYSE:FN) Announces Earnings Results

Key Points

• Fabrinet beat quarterly expectations: The company reported EPS of $4.10 versus the $3.81 consensus and revenue of $1.32 billion versus estimates of $1.28 billion. Net margin was 9.94% and return on equity was 19.83%.
• Shares rose sharply after the results: Fabrinet traded up $28.28 to $598.50, giving it a market capitalization of approximately $21.44 billion and a P/E ratio of 51.42.
• Analyst sentiment remains generally positive: The stock carries a “Moderate Buy” consensus rating with a $643 average price target, although some firms recently downgraded it to “equal weight” or “hold.”

Fabrinet (NYSE:FN - Get Free Report) released its earnings results on Monday. The technology company reported $4.10 EPS for the quarter, beating the consensus estimate of $3.81 by $0.29, FiscalAI reports. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.The company had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.28 billion.

Fabrinet Stock Performance

NYSE:FN traded up $28.28 during trading hours on Monday, hitting $598.50. The stock had a trading volume of 1,306,091 shares, compared to its average volume of 828,164. The business's 50 day moving average is $526.98 and its 200-day moving average is $568.69. The company has a market cap of $21.44 billion, a price-to-earnings ratio of 51.42 and a beta of 1.23. Fabrinet has a one year low of $272.49 and a one year high of $748.89.

Insider Transactions at Fabrinet

In other news, Director Homa Bahrami sold 2,500 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $711.91, for a total transaction of $1,779,775.00. Following the sale, the director owned 16,233 shares of the company's stock, valued at $11,556,435.03. This trade represents a 13.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.24% of the company's stock.

Institutional Trading of Fabrinet

Hedge funds have recently bought and sold shares of the stock. Quarry LP lifted its stake in Fabrinet by 300.0% in the fourth quarter. Quarry LP now owns 72 shares of the technology company's stock valued at $33,000 after buying an additional 54 shares in the last quarter. Acumen Wealth Advisors LLC bought a new stake in shares of Fabrinet during the fourth quarter worth $37,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Fabrinet during the fourth quarter worth $42,000. Strive Financial Group LLC acquired a new stake in shares of Fabrinet during the fourth quarter worth $49,000. Finally, Larson Financial Group LLC lifted its position in Fabrinet by 25.8% in the 3rd quarter. Larson Financial Group LLC now owns 161 shares of the technology company's stock valued at $59,000 after acquiring an additional 33 shares in the last quarter. 97.38% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

FN has been the topic of a number of recent research reports. Rosenblatt Securities raised their price objective on shares of Fabrinet from $715.00 to $750.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Barclays upped their target price on shares of Fabrinet from $548.00 to $702.00 and gave the company an "overweight" rating in a research report on Tuesday, May 5th. Fox Advisors downgraded Fabrinet from a "strong-buy" rating to an "equal weight" rating in a research note on Tuesday, May 5th. Weiss Ratings lowered Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. Finally, Northland Securities set a $800.00 price objective on Fabrinet in a research note on Monday, April 20th. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Fabrinet presently has a consensus rating of "Moderate Buy" and a consensus price target of $643.00.

About Fabrinet

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.

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