Fabrinet Delivers Upbeat Results in Fiscal Q2

Fabrinet (NYSE: FN) reported stronger-than-expected fiscal Q2 results, topping both earnings and revenue estimates. Notably, the company issued third-quarter guidance above the analyst expectations.

Markedly, shares of the Thailand-based leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services have gained over 40% over the past year.

Q2 Beat

In fiscal Q2, adjusted earnings of $1.50 per share grew 36.4% year-over-year and beat analysts’ expectations of $1.45 per share. The company reported earnings of $1.10 per share for the prior-year period.

Furthermore, revenues jumped 24.8% year-over-year to $566.6 million and exceeded consensus estimates of $546.03 million.

Q3 Outlook

Based on strong Q2 results, the company provided its guidance for the third fiscal quarter.

The company forecasts adjusted earnings in the range of $1.48 to $1.55 per share, while the consensus estimate is pegged at $1.44 per share. Revenue is projected to be in the range of $560 million to $580 million.

CEO Comments

Fabrinet CEO, Seamus Grady, commented, “Our team continues to effectively manage ongoing supply chain constraints, and with continued strong demand trends, our outlook remains very positive.”

Wall Street’s Take

Following the Q2 results, Needham analyst Alex Henderson maintained a Buy rating on the stock with a price target of $130 (14.9% upside potential).

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average Fabrinet stock price projection of $116.75 implies 13.4% upside potential to current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on FN stock, compared to a sector average of 69%.

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