Why Fabrinet Shares Jumped


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 have jumped today by as much as 12% after the company reported second-quarter earnings.

So what: Revenue in the fiscal second quarter totaled $167.4 million, a jump of 73.3% from a year ago. Non-GAAP net income came in at $13.8 million, or $0.39 per share. That bottom-line result is more than double the profit the company generated a year ago.

Now what: CEO Tom Mitchell said the company was able to deliver solid results despite a tough macroeconomic backdrop. Outlook for the current quarter was also encouraging, with Fabrinet expecting revenue in the range of $147 million to $151 million, with non-GAAP earnings per share of $0.29 to $0.31. On a GAAP basis, investors can expect a bottom-line result of $0.26 to $0.28 per share in profits.

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

A fresh idea for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

The article Why Fabrinet Shares Jumped originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.