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.

Interested in more info on Fabrinet? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.