Fabrinet (NYSE:FN) Shares Up 12.9% on Earnings Beat

Fabrinet (NYSE:FN)’s stock price rose 12.9% during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $362.00 and last traded at $355.2010. Approximately 380,356 shares traded hands during mid-day 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 EPS for the quarter, topping the consensus estimate of $4.20 by $0.14. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.41 billion. Fabrinet had a net margin of 10.19% and a return on equity of 21.23%. The company’s revenue for the quarter was up 50.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.92 earnings per share.

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

Several equities analysts recently commented on FN shares. Wall Street Zen downgraded Fabrinet from a “buy” rating to a “hold” rating in a research note on Monday, July 20th. B. Riley Financial decreased their target price on Fabrinet from $431.00 to $385.00 and set a “neutral” rating for the company in a research report on Friday. Needham & Company LLC restated a “buy” rating and issued a $500.00 target price on shares of Fabrinet in a research note on Tuesday. Weiss Ratings cut Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 9th. Finally, Susquehanna cut their price target on Fabrinet from $850.00 to $600.00 and set a “positive” rating for the company in a research note on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $607.38.

Insider Transactions at Fabrinet

In related news, EVP Edward Archer sold 2,500 shares of Fabrinet stock in a transaction on Thursday, September 3rd. The stock was 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 Securities & Exchange Commission, which is accessible through the SEC website. 0.22% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fabrinet

Large investors have recently added to or reduced their stakes in the company. Paradigm Capital Management Inc. NY bought a new position in shares of Fabrinet in the second quarter worth approximately $298,183,000. Janus Henderson Group PLC grew its holdings in shares of Fabrinet by 15.9% during the first quarter. Janus Henderson Group PLC now owns 291,659 shares of the technology company’s stock valued at $152,071,000 after buying an additional 40,090 shares during the last quarter. Principal Financial Group Inc. increased its position in shares of Fabrinet by 15.0% during the first quarter. Principal Financial Group Inc. now owns 216,049 shares of the technology company’s stock valued at $112,674,000 after acquiring an additional 28,166 shares in the last quarter. Allspring Global Investments Holdings LLC increased its position in shares of Fabrinet by 108.1% during the first quarter. Allspring Global Investments Holdings LLC now owns 165,146 shares of the technology company’s stock valued at $88,350,000 after acquiring an additional 85,780 shares in the last quarter. Finally, Wedge Capital Management L L P NC increased its position in shares of Fabrinet by 11.5% during the second quarter. Wedge Capital Management L L P NC now owns 128,795 shares of the technology company’s stock valued at $72,393,000 after acquiring an additional 13,245 shares in the last quarter. Hedge funds and other institutional investors own 97.38% of the company’s stock.

Fabrinet Trading Up 13.6%

The company has a market capitalization of $12.81 billion, a PE ratio of 27.40 and a beta of 1.35. The business’s fifty day moving average is $402.07 and its two-hundred day moving average is $521.45.

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.