Fabrinet (NYSE:FN) Issues Q1 2027 Earnings Guidance

Key Points

• Fabrinet issued upbeat Q1 fiscal 2027 guidance: The company expects non-GAAP EPS of $4.10–$4.25 and revenue of $1.375–$1.425 billion, both above analyst consensus estimates.
• Recent results exceeded expectations: Fiscal Q4 revenue rose 45% year over year to a record $1.316 billion, while non-GAAP EPS of $4.10 surpassed consensus by $0.29. Full-year fiscal 2026 revenue increased 36% to $4.64 billion.
• Analyst sentiment remains positive but mixed: Fabrinet has a “Moderate Buy” consensus rating and a $643 average price target, while several analysts recently lowered targets or downgraded the stock to “Hold.”

Fabrinet (NYSE:FN - Get Free Report) updated its first quarter 2027 earnings guidance on Monday morning. The company provided earnings per share guidance of 4.100-4.250 for the period, compared to the consensus EPS estimate of 3.950. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.3 billion.

Fabrinet Stock Performance

Shares of NYSE:FN traded up $28.28 during mid-day trading on Monday, reaching $598.50. 1,541,695 shares of the company's stock were exchanged, compared to its average volume of 830,153. The firm has a market capitalization of $21.44 billion, a price-to-earnings ratio of 51.42 and a beta of 1.23. The business's fifty day moving average price is $526.47 and its 200-day moving average price is $569.40. Fabrinet has a twelve month low of $272.49 and a twelve month high of $748.89.

Fabrinet (NYSE:FN - Get Free Report) last announced its earnings results on Tuesday, August 18th. The technology company reported $4.10 EPS for the quarter, topping the consensus estimate of $3.81 by $0.29. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.The firm had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.28 billion. Analysts predict that Fabrinet will post 12.97 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Weiss Ratings downgraded shares of Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. JPMorgan Chase & Co. reduced their price objective on shares of Fabrinet from $700.00 to $680.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 5th. Needham & Company LLC decreased their price objective on shares of Fabrinet from $800.00 to $650.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. Zacks Research downgraded shares of Fabrinet from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Finally, Rosenblatt Securities boosted their target price on shares of Fabrinet from $715.00 to $750.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $643.00.

Insider Transactions at Fabrinet

In other Fabrinet news, Director Homa Bahrami sold 2,500 shares of the stock in a transaction that occurred on 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 transaction, the director directly owned 16,233 shares in the company, valued at approximately $11,556,435.03. This represents a 13.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.24% of the company's stock.

More Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Results exceeded expectations: Fourth-quarter revenue reached a record $1.316 billion, up 45% year over year and above guidance. Non-GAAP EPS was $4.10, beating analysts’ consensus estimate of $3.81. GAAP net income rose to $139.3 million, or $3.83 per diluted share, from $87.2 million, or $2.42, a year earlier. Fabrinet Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Full-year momentum was strong: Fiscal 2026 revenue increased 36% to $4.64 billion, while GAAP net income climbed 42% to $473.0 million. Non-GAAP full-year EPS reached a record $14.09, compared with $10.17 in fiscal 2025. Management cited multiple growth drivers across its optical packaging and precision manufacturing businesses. Fabrinet Reports Record Fourth Quarter and Fiscal 2026 Revenue Growth of 36%
• Positive Sentiment: Fiscal 2027 began with constructive guidance: Fabrinet expects first-quarter revenue of $1.375 billion to $1.425 billion and non-GAAP EPS of $4.10 to $4.25, supporting continued year-over-year growth and reinforcing management’s upbeat outlook.
• Neutral Sentiment: Executive incentives were updated: Fabrinet announced changes to executive incentive arrangements alongside its earnings release. The update may align management compensation with performance goals, but the company did not provide enough detail in the available report to assess a material financial impact. Fabrinet Reports Record Earnings and Updates Executive Incentives
• Negative Sentiment: Investors should monitor quality of earnings and execution risks: A $56.7 million gain from non-marketable equity securities and a $57.4 million Pillar Two tax provision affected GAAP results and were excluded from non-GAAP figures. Fabrinet also reported substantial capital spending and working-capital investment, while citing supply-chain, customer-concentration and demand risks.
• Negative Sentiment: Insider selling remains a secondary caution: Insider Thomas F. Kelly sold 1,850 shares, worth an estimated $1.15 million, during the past six months, with no reported insider purchases.

Hedge Funds Weigh In On Fabrinet

Several institutional investors have recently made changes to their positions in FN. Quarry LP increased its position in Fabrinet by 300.0% in the 4th 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 position in Fabrinet in the fourth quarter worth approximately $37,000. Kemnay Advisory Services Inc. acquired a new stake in Fabrinet in the fourth quarter valued at approximately $42,000. Strive Financial Group LLC acquired a new stake in Fabrinet in the fourth quarter valued at approximately $49,000. Finally, Larson Financial Group LLC grew its stake in Fabrinet by 25.8% in the third 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 during the period. Institutional investors and hedge funds own 97.38% of the company's stock.

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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