Why Fabrinet Stock Is Moving Higher Tuesday

Fabrinet FN stock is trading higher on Tuesday after the company reported better-than-expected fourth quarter financial results and issued strong guidance.

The Details: Fabrinet, on Monday, reported fourth quarter earnings after the market closed where its adjusted EPS of $2.41 beat the $2.24 estimate and its revenue of $753.261 million beat the $732.22 million estimate.

Fabrinet CEO Seamus Grady said, “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.”

Additionally, Fabrinet issued guidance above the consensus estimates. The company expects its first quarter revenue to range from $760 million to $780 million versus the analysts estimate of $749.24 million. Also, the company issued adjusted EPS guidance of $2.33 to $2.40 compared to the analysts estimate of $2.26 per share.

Analyst Changes: Following the earnings report, multiple analysts issued price target changes.

• Needham analyst maintained a Buy rating on Fabrinet and raised its price target from $270 to $280.
• Rosenblatt analyst maintained a Buy rating on Fabrinet and raised its price target from $260 to $280.
• B. Riley Securities analyst maintained a Neutral rating on Fabrinet and raised its price target from $171 to $196.
• JP Morgan analyst maintained a Neutral rating on Fabrinet and raised its price target from $240 to $285.

Related Link: Palo Alto Networks Delivers ‘Solid Finish’ To Year, 10 Analysts Raise Forecasts

FN Price Action: Fabrinet shares are moving 18.6% higher at $274.70 at the time of publication, according to data from Benzinga Pro.

Image: Robert Owen-Wahl from Pixabay