Fabrinet (FN) stock experienced a significant surge on Tuesday, driven by the company’s impressive fourth-quarter financial results and optimistic guidance. In its earnings report released after the market closed on Monday, Fabrinet surpassed analysts’ expectations, reporting an adjusted earnings per share (EPS) of $2.41, exceeding the estimated $2.24. Revenue also came in stronger than anticipated, reaching $753.261 million, compared to the projected $732.22 million.
Fabrinet’s CEO, Seamus Grady, highlighted the company’s remarkable performance, stating, “Our strong fourth-quarter results capped a remarkable fiscal year, representing our fourth quarter in a row of record revenue, and record earnings per share, both of which were above our guidance ranges.” This robust performance was further amplified by the company’s issuance of guidance that surpassed consensus estimates. Fabrinet anticipates first-quarter revenue to fall between $760 million and $780 million, outperforming the analysts’ estimate of $749.24 million. Similarly, the company projected an adjusted EPS range of $2.33 to $2.40, exceeding the $2.26 per share expectation.
Following the positive earnings announcement, several analysts adjusted their price targets for Fabrinet stock. Needham maintained a Buy rating on the stock, while increasing its price target from $270 to $280. Rosenblatt echoed this sentiment, also maintaining a Buy rating and elevating its price target from $260 to $280. B. Riley Securities, however, maintained a Neutral rating on Fabrinet, despite raising its price target from $171 to $196. Similarly, JP Morgan held a Neutral rating on the stock while adjusting its price target from $240 to $285.
The positive outlook reflected in Fabrinet’s earnings report and subsequent analyst price target revisions contributed to a significant upward movement in the stock’s price. At the time of publication, Fabrinet shares were trading 18.6% higher at $274.70, according to data from Benzinga Pro.
