Why Fabrinet Shares Dropped
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What: Shares of Fabrinet (NYS: FN) have dropped by as much as 10% after the company reported third-quarter earnings.
So what: Revenue in the third quarter fell 29% to $139 million, which led to adjusted net income of $9.9 million, or $0.28 per share. On a GAAP basis, Fabrinet posted a net loss of $46.3 million, or $1.35 per share. The majority of that loss is related to the recent floods that hit Thailand last year.
Now what: The company incurred $55.6 million in expenses related to the flood during the quarter, bringing its total flood-related costs over the past nine months to $95.9 million. CEO Tom Mitchell said the company remains on a "strong recovery path," and that it continues to win new business. Looking forward, fourth-quarter guidance calls for revenue between $139 million and $143 million, with adjusted earnings per share in the range of $0.25-$0.27.
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