Fabrinet (NYSE:FN) Issues Q1 2027 Earnings Guidance

Fabrinet (NYSE:FN) updated its first quarter 2027 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of 4.100-4.250 for the period, compared to the consensus earnings per share estimate of 3.950. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.3 billion.

Fabrinet Trading Down 19.7%

FN opened at $480.36 on Wednesday. Fabrinet has a 12-month low of $272.49 and a 12-month high of $748.89. The business’s fifty day simple moving average is $524.36 and its 200-day simple moving average is $569.25. The company has a market capitalization of $17.21 billion, a price-to-earnings ratio of 36.81 and a beta of 1.23.

Fabrinet (NYSE:FN) last announced its quarterly earnings results on Monday, August 17th. The technology company reported $4.10 EPS for the quarter, beating the consensus estimate of $3.81 by $0.29. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.28 billion. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.The business’s revenue for the quarter was up 44.6% on a year-over-year basis. During the same quarter last year, the firm posted $2.65 earnings per share. Fabrinet has set its Q1 2027 guidance at 4.100-4.250 EPS. On average, equities research analysts predict that Fabrinet will post 16.46 EPS for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on FN shares. JPMorgan Chase & Co. boosted their price target on shares of Fabrinet from $680.00 to $695.00 and gave the company a “neutral” rating in a report on Tuesday. Weiss Ratings downgraded shares of Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 12th. Wall Street Zen lowered shares of Fabrinet from a “buy” rating to a “hold” rating in a report on Monday, July 20th. Needham & Company LLC reissued a “buy” rating and issued a $650.00 price objective on shares of Fabrinet in a research note on Tuesday. Finally, Barclays upped their target price on Fabrinet from $702.00 to $739.00 and gave the stock an “overweight” rating in a report on Tuesday. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $649.50.

Insider Buying and Selling

In other Fabrinet news, Director Homa Bahrami sold 2,500 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $711.91, for a total transaction of $1,779,775.00. Following the completion of the sale, the director directly owned 16,233 shares of the company’s stock, valued at approximately $11,556,435.03. This represents a 13.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.24% of the company’s stock.

Key Stories Impacting Fabrinet

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Record results and strong data-center demand: Fourth-quarter revenue rose 45% year over year to $1.316 billion, while non-GAAP EPS reached $4.10, exceeding analyst expectations. Data-center revenue reportedly increased 68%, with data-center interconnect sales surpassing a $1 billion annualized run rate. Fabrinet Q4 Earnings Beat Estimates on Strong Data Center Growth
• Positive Sentiment: Optimistic outlook: Management cited sustained data-center demand, new transceiver ramps and additional production capacity as drivers for fiscal 2027. First-quarter revenue guidance of $1.375 billion to $1.425 billion and non-GAAP EPS guidance of $4.10 to $4.25 were above consensus estimates. FN Q4 Earnings Call Highlights Data Center Growth and Capacity
• Positive Sentiment: Analyst support remains intact: Rosenblatt and Needham reaffirmed Buy ratings with price targets of $750 and $650, respectively, while JPMorgan raised its target to $695 but maintained a Neutral rating. These Analysts Increase Their Forecasts On Fabrinet After Q4 Results
• Neutral Sentiment: AI-sector pressure: Fabrinet’s results contributed to a broader selloff in optical and AI-infrastructure stocks, amid risk aversion, higher bond yields and concerns about potential softness in Nvidia-related datacom demand. Fabrinet Shares Nvidia Datacom Weakness Overshadows Telecom Strength
• Negative Sentiment: Profitability and cash-flow concerns: Investors appeared disappointed by softer first-quarter GAAP EPS guidance and concerns that heavy investment is reducing near-term cash generation. Fiscal 2026 free cash flow fell to roughly $4 million from $207 million, while capital expenditures and inventory increased substantially. Fabrinet Sinks as Investors Focus on Cash Flow, Inventory and Financing
• Negative Sentiment: High expectations reset: Despite record revenue and earnings, Fabrinet’s elevated valuation left the stock vulnerable to profit-taking. A new term loan to support capital spending and a large inventory build added to concerns about working-capital needs and execution risk.

Institutional Investors Weigh In On Fabrinet

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Hsbc Holdings PLC acquired a new position in Fabrinet during the 4th quarter valued at about $229,000. T. Rowe Price Investment Management Inc. boosted its holdings in Fabrinet by 103,077.3% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 22,699 shares of the technology company’s stock worth $10,335,000 after acquiring an additional 22,677 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of Fabrinet by 4.3% during the fourth quarter. Corient Private Wealth LLC now owns 1,947 shares of the technology company’s stock worth $886,000 after acquiring an additional 80 shares during the last quarter. Strive Financial Group LLC purchased a new stake in shares of Fabrinet during the fourth quarter worth about $49,000. Finally, Caitlin John LLC increased its holdings in shares of Fabrinet by 2,273.1% during the fourth quarter. Caitlin John LLC now owns 1,234 shares of the technology company’s stock valued at $562,000 after acquiring an additional 1,182 shares in the last quarter. Hedge funds and other institutional investors own 97.38% of the company’s stock.

Fabrinet Company Profile

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.