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.
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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.