Fabrinet (NYSE:FN) Stock Price Up 12.9% After Earnings Beat

Fabrinet (NYSE:FN) traded up 12.9% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $362.00 and last traded at $355.2010. 380,356 shares traded hands during trading, a decline of 56% from the average daily volume of 859,584 shares. The stock had previously closed at $314.70.

The technology company reported $4.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.20 by $0.14. Fabrinet had a return on equity of 21.23% and a net margin of 10.19%. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.41 billion. During the same period in the prior year, the company posted $2.92 earnings per share. The company’s quarterly revenue was up 50.7% on a year-over-year basis.

More Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Strong first-quarter results: Fabrinet reported fiscal Q1 revenue of $1.47 billion, up 50.7% year over year and above the $1.41 billion consensus estimate. EPS of $4.34 also exceeded expectations of approximately $4.19-$4.20 and rose from $2.92 a year earlier. Fabrinet First-Quarter Fiscal 2027 Results
• Positive Sentiment: Optimistic second-quarter outlook: Management forecast EPS of $4.77-$4.92 versus the $4.39 consensus estimate, and revenue of $1.6-$1.7 billion versus expectations of $1.5 billion. The company cited strong demand from data-center customers. Fabrinet Earnings and Guidance
• Positive Sentiment: Capacity expansion supports growth: Fabrinet is beginning work on Building 11, which is expected to add roughly $3 billion of capacity over time, reinforcing its ability to serve longer-term AI and data-center infrastructure demand. Fabrinet Building 11 Capacity Expansion
• Positive Sentiment: Analyst support remains favorable: Needham reaffirmed a Buy rating with a $500 price target, while Rosenblatt maintained Buy but lowered its target from $750 to $600.
• Neutral Sentiment: Tax and cash-flow considerations: Commentary noted that a new global minimum tax limited GAAP earnings growth relative to revenue growth, while rapid expansion is consuming cash. Investors may monitor margins, taxes and capital spending as growth accelerates. Fabrinet Growth and Cash Costs

Wall Street Analysts Forecast Growth

FN has been the topic of a number of recent analyst reports. Needham & Company LLC reaffirmed a “buy” rating and set a $500.00 price target on shares of Fabrinet in a report on Tuesday. Susquehanna decreased their price objective on shares of Fabrinet from $850.00 to $600.00 and set a “positive” rating for the company in a report on Wednesday, October 21st. Weiss Ratings downgraded shares of Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 9th. Zacks Research upgraded shares of Fabrinet from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. Finally, Rosenblatt Securities dropped their target price on shares of Fabrinet from $750.00 to $600.00 and set a “buy” rating on the stock in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $607.38.

Insider Activity

In related news, EVP Edward Archer sold 2,500 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $385.91, for a total value of $964,775.00. Following the completion of the transaction, the executive vice president owned 7,007 shares of the company’s stock, valued at approximately $2,704,071.37. This represents a 26.30% decrease in their position. The sale 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.

Hedge Funds Weigh In On Fabrinet

Hedge funds have recently modified their holdings of the stock. Alps Advisors Inc. grew its stake in Fabrinet by 36.4% during the third quarter. Alps Advisors Inc. now owns 1,925 shares of the technology company’s stock valued at $817,000 after acquiring an additional 514 shares in the last quarter. CenterBook Partners LP lifted its stake in Fabrinet by 64.9% in the 3rd quarter. CenterBook Partners LP now owns 31,691 shares of the technology company’s stock worth $13,446,000 after purchasing an additional 12,471 shares in the last quarter. Heritage Family Offices LLP purchased a new stake in Fabrinet in the 3rd quarter worth $51,000. Calamos Advisors LLC lifted its stake in Fabrinet by 1,469.7% in the 3rd quarter. Calamos Advisors LLC now owns 51,800 shares of the technology company’s stock worth $21,977,000 after purchasing an additional 48,500 shares in the last quarter. Finally, Kestra Advisory Services LLC boosted its holdings in shares of Fabrinet by 23.0% during the 3rd quarter. Kestra Advisory Services LLC now owns 3,315 shares of the technology company’s stock valued at $1,406,000 after purchasing an additional 619 shares during the last quarter. Hedge funds and other institutional investors own 97.38% of the company’s stock.

Fabrinet Stock Performance

The firm’s fifty day simple moving average is $402.07 and its 200 day simple moving average is $521.45. The firm has a market cap of $12.81 billion, a P/E ratio of 27.40 and a beta of 1.35.

Fabrinet Company Profile

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.