Fabrinet (NYSE:FN – Get Free Report) posted its earnings results on Monday. The technology company reported $4.10 EPS for the quarter, topping analysts’ consensus estimates 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 business had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.28 billion.
Fabrinet Price Performance
Shares of FN stock traded up $28.28 during midday trading on Monday, hitting $598.50. The company had a trading volume of 1,415,122 shares, compared to its average volume of 828,164. The company’s 50 day simple moving average is $526.98 and its 200 day simple moving average is $568.69. Fabrinet has a 52-week low of $272.49 and a 52-week high of $748.89. The stock has a market cap of $21.44 billion, a price-to-earnings ratio of 51.42 and a beta of 1.23.
Insider Activity at Fabrinet
In related news, Director Homa Bahrami sold 2,500 shares of the stock in a transaction 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 completion of the sale, the director directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.24% of the stock is owned by company insiders.
Hedge Funds Weigh In On Fabrinet
Analysts Set New Price Targets
A number of research analysts recently issued reports on the company. Rosenblatt Securities raised their price target on Fabrinet from $715.00 to $750.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Weiss Ratings downgraded Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday. Needham & Company LLC lowered their target price on shares of Fabrinet from $800.00 to $650.00 and set a “buy” rating on the stock in a research report on Wednesday, July 22nd. Fox Advisors cut shares of Fabrinet from a “strong-buy” rating to an “equal weight” rating in a report on Tuesday, May 5th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Fabrinet from $700.00 to $680.00 and set a “neutral” rating for the company in a research report on Tuesday, May 5th. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $643.00.
Read Our Latest Stock Analysis on Fabrinet
Key Headlines Impacting Fabrinet
Here are the key news stories impacting Fabrinet this week:
- Positive Sentiment: Fabrinet reported record fourth-quarter revenue of $1.316 billion, up 45% year over year and above the company’s guidance range. Non-GAAP diluted EPS reached a record $4.10, beating the $3.81 analyst consensus. Fabrinet Announces Fourth Quarter and Fiscal Year 2026 Financial Results
- Positive Sentiment: Full-year fiscal 2026 revenue rose 36% to $4.64 billion, while GAAP net income increased to $473.0 million from $332.5 million. Full-year GAAP diluted EPS was $13.05, compared with $9.17 in the prior year, highlighting substantial earnings growth.
- Positive Sentiment: Management said multiple growth drivers across optical communications, data-center infrastructure and other markets are supporting sustained momentum. For the first quarter of fiscal 2027, Fabrinet expects revenue of $1.375 billion to $1.425 billion and non-GAAP EPS of $4.10 to $4.25, indicating continued sequential growth.
- Neutral Sentiment: The quarter benefited from unusual below-the-line items, including a $56.7 million gain on non-marketable equity securities and a $57.4 million Pillar Two tax provision. These items were excluded from non-GAAP results, making the adjusted figures more useful for assessing core operations but potentially increasing scrutiny of GAAP earnings quality.
- Negative Sentiment: Fiscal-year operating cash flow declined to $256.7 million from $328.4 million, while capital expenditures more than doubled to $252.5 million. The resulting annual free cash flow was only $4.2 million, a potential concern if heavy investment continues.
- Negative Sentiment: At a share price near $598.50 and a price-to-earnings ratio above 50, Fabrinet’s valuation leaves limited room for execution or guidance disappointments. Investors will also monitor customer concentration, supply-chain risks and whether the first-quarter outlook meets elevated expectations.
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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