Northland Securities Expects Weaker Earnings for Fabrinet

Key Points

• Northland Securities slightly trimmed its Q1 2027 EPS estimate to $3.82 (from $3.84) but raised its FY2027 forecast to $17.23 and lifted several quarterly estimates, signaling stronger-than-expected demand assumptions for Fabrinet’s services.
• Fabrinet beat Q1 expectations with $3.72 EPS (vs. $3.58 est.) and $1.21B revenue, up 39.3% year-over-year, and continues to guide materially higher near-term profitability.
• Analyst sentiment is broadly positive—multiple upgrades and higher price targets (average target ~$661.75)—but caution remains as sector cooling and at least one bearish forecast (JPMorgan) pose downside risk.

Fabrinet (NYSE:FN - Free Report) - Research analysts at Northland Securities reduced their Q1 2027 earnings per share (EPS) estimates for shares of Fabrinet in a report released on Tuesday, May 5th. Northland Securities analyst T. Savageaux now expects that the technology company will post earnings of $3.82 per share for the quarter, down from their previous estimate of $3.84. The consensus estimate for Fabrinet's current full-year earnings is $12.80 per share. Northland Securities also issued estimates for Fabrinet's Q2 2027 earnings at $4.18 EPS, Q3 2027 earnings at $4.51 EPS, Q4 2027 earnings at $4.72 EPS and FY2027 earnings at $17.23 EPS.

FN has been the subject of a number of other research reports. Barclays increased their price target on shares of Fabrinet from $548.00 to $702.00 and gave the company an "overweight" rating in a report on Tuesday. Zacks Research upgraded shares of Fabrinet from a "hold" rating to a "strong-buy" rating in a research report on Tuesday. Fox Advisors cut shares of Fabrinet from a "strong-buy" rating to an "equal weight" rating in a report on Tuesday. B. Riley Financial boosted their price target on Fabrinet from $366.00 to $452.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 3rd. Finally, Susquehanna upped their price target on Fabrinet from $550.00 to $570.00 and gave the stock a "positive" rating in a report on Thursday, January 22nd. One 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 stock. Based on data from MarketBeat, Fabrinet presently has an average rating of "Moderate Buy" and an average target price of $661.75.

Fabrinet Stock Performance

Shares of NYSE FN opened at $624.86 on Friday. Fabrinet has a one year low of $199.86 and a one year high of $734.79. The firm has a market capitalization of $22.39 billion, a P/E ratio of 53.68 and a beta of 1.22. The company's fifty day moving average is $593.72 and its two-hundred day moving average is $510.15.

Fabrinet (NYSE:FN - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The technology company reported $3.72 earnings per share for the quarter, topping analysts' consensus estimates of $3.58 by $0.14. The firm had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.19 billion. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.Fabrinet's quarterly revenue was up 39.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.52 earnings per share. Fabrinet has set its Q4 2026 guidance at 3.720-3.870 EPS.

Institutional Investors Weigh In On Fabrinet

A number of large investors have recently added to or reduced their stakes in FN. Divisadero Street Capital Management LP raised its position in shares of Fabrinet by 57.4% during the 3rd quarter. Divisadero Street Capital Management LP now owns 56,344 shares of the technology company's stock worth $20,544,000 after purchasing an additional 20,556 shares during the last quarter. Azzad Asset Management Inc. ADV acquired a new stake in Fabrinet during the 3rd quarter valued at $1,037,000. Federated Hermes Inc. increased its position in Fabrinet by 105.2% during the third quarter. Federated Hermes Inc. now owns 5,982 shares of the technology company's stock worth $2,181,000 after buying an additional 3,067 shares in the last quarter. New York State Common Retirement Fund increased its position in Fabrinet by 67.7% during the third quarter. New York State Common Retirement Fund now owns 64,142 shares of the technology company's stock worth $23,387,000 after buying an additional 25,889 shares in the last quarter. Finally, M&T Bank Corp raised its holdings in shares of Fabrinet by 196.5% in the fourth quarter. M&T Bank Corp now owns 2,345 shares of the technology company's stock worth $1,068,000 after acquiring an additional 1,554 shares during the last quarter. 97.38% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Fabrinet

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Northland Securities raised its FY2027 EPS view to $17.23 (from $16.82) and lifted several quarterly estimates (Q4 to $4.72, Q3 to $4.51, Q2 to $4.18). These upward revisions imply stronger-than-expected demand assumptions for Fabrinet’s contract-manufacturing services.
• Positive Sentiment: Zacks upgraded Fabrinet from "hold" to "strong-buy," which can attract momentum buyers and retail flows. Read More.
• Positive Sentiment: The Globe and Mail noted a new buy rating for Fabrinet, adding to analyst interest and visibility among Canadian/international investors. Read More.
• Neutral Sentiment: Northland trimmed its Q1 2027 estimate slightly (to $3.82 from $3.84) — a modest adjustment that is unlikely to change the longer-term earnings trajectory but signals some near-term quarter-to-quarter variability.
• Negative Sentiment: JPMorgan published a pessimistic forecast for Fabrinet’s stock price, which can pressure institutional sentiment and trigger defensive positioning. Read More.
• Negative Sentiment: Sector pressure: reports show the AI/optoics trade is cooling (Applied Optoelectronics, Coherent, Lumentum all fell), creating headwinds for suppliers and contract manufacturers like Fabrinet. That broader sell-off is a likely contributor to negative stock moves today. Read More.

Fabrinet Company Profile

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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