Fabrinet Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fabrinet (NYS: FN) have popped by up to 18% today after the company reported earnings last night.
So what: Second-quarter sales fell by 48% to $96.6 million, while non-GAAP net income dropped by 64% to $0.18 per share. Fabrinet was hit pretty hard by the massive floods in Thailand that have ravaged much of the tech industry. CEO Tom Mitchell said the company is "executing on a strong recovery plan" and making progress toward getting back to business as usual.
Now what: Third-quarter sales are expected to be from $131 million to $136 million, giving way to non-GAAP earnings of $0.22 to $0.24 per share. A couple of analysts have followed up with bullish remarks. Morgan Stanley gave it a double upgrade, moving from underweight to overweight. Collins Stewart reiterated its buy rating while raising its price target from $18 to $21, expecting Fabrinet to regain pre-flood capacity by the end of the year.
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