Fabrinet Reports Strong Earnings Yet Shares Plunge 15%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy FN?
Source: seekingalpha
- Strong Earnings Report: Fabrinet reported an adjusted earnings per share of $3.36 for the fiscal second quarter ending December 26, with revenue rising 36% year-over-year to $1.13 billion, surpassing analyst expectations of $3.25 and $1.08 billion, indicating robust market performance.
- Strategic Project Contributions: CEO Seamus Grady highlighted that multiple large strategic programs significantly contributed to the outstanding results, showcasing the company's increasing competitiveness in the tech manufacturing sector.
- Optimistic Future Outlook: The company anticipates adjusted earnings per share between $3.45 and $3.60 for the next quarter, with revenue expected to range from $1.15 billion to $1.2 billion, reflecting confidence in future growth despite slightly lower analyst expectations.
- Negative Stock Reaction: Despite the strong earnings report, Fabrinet's shares plummeted nearly 15% in after-hours trading, indicating market concerns about the company's future performance, potentially linked to overall market sentiment and investor expectations.
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Analyst Views on FN
Wall Street analysts forecast FN stock price to rise
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 462.050
Low
499.00
Averages
544.83
High
600.00
Current: 462.050
Low
499.00
Averages
544.83
High
600.00
About FN
Fabrinet is a provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, automotive components, industrial lasers, medical devices and sensors. The Company offers a range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. It focuses primarily on low-volume production of a wide variety of high complexity products. It also designs and fabricates applications-specific crystals, lenses, prisms, mirrors, laser components, and substrates (customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (customized glass).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Price Movement: Following the earnings report, Rambus shares fell 14.2% in pre-market trading to $97.59, reflecting negative market sentiment regarding the company's future performance and possibly prompting short-term investor sell-offs.
- Overall Market Trend: While Rambus shares declined, U.S. stock futures were mostly higher, with Nasdaq 100 futures gaining around 100 points, suggesting an overall optimistic sentiment towards tech stocks, potentially influenced by the performance of other technology companies.
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