DailyIQ
|
Sector:TechnologyAll sectors
Last updated 2 minutes ago

FN·Fabrinet

$.
-. (-.%)
Pre-Market
High
$455.61
Open
$453.00
Market Cap
17.44B
52W High
$748.89
Low
$440.20
P. Close
$460.19
P/E
41.42
52W Low
$272.49
Fwd P/E
-
DailyIQ Est.
$769.58
Technical Score (1D)
14
SELL
News Sentiment
70
BULLISH
FN’s latest strategic emphasis on expanding its optical infrastructure marks a decisive move to support the accelerating demand for high‑speed AI workloads. The company’s robust return on invested capital demonstrates efficient use of capital, suggesting that the expansion will likely be financed with high‑quality earnings. By positioning itself as a leading AI and data center supplier, FN is poised to capture a share of the broader surge in data center demand that has been driven by cloud adoption and AI workloads. This alignment with the data center boom implies that FN’s revenue mix could shift toward higher‑margin AI services in the coming weeks. Traders should monitor FN’s upcoming earnings release for guidance on AI‑related revenue growth and capital allocation plans. The optical infrastructure expansion also signals potential supply‑chain opportunities for component vendors and could influence FN’s cost structure. If the company confirms a significant uptick in AI revenue, it may reinforce the narrative that AI infrastructure is a high‑growth segment within the data center sector. Investors should watch for any commentary on the pace of optical deployment and the expected return on the new capacity. Finally, keep an eye on broader data center demand indicators, as they will provide context for FN’s performance in the next 1–10 trading days.
Earnings Summary
Fabrinet is a key player in advanced manufacturing, specializing in optical communications, industrial lasers, automotive, medical, and sensor industries by providing comprehensive services from process design to assembly and testing of complex components. Operating within the Technology sector, specifically the Electronic Components industry, the company enables high-speed data transmission and manufactures critical parts for various high-tech applications, serving global original equipment manufacturers. In its most recent reported quarters, Fabrinet demonstrated a positive trend in both earnings per share (EPS) and revenue. For Q3 2026, the company reported actual EPS of $3.72 against an estimate of $3.666, and actual revenue of $1.214 billion against an estimate of $1.215 billion. This follows a pattern of strong performance, with Q2 2026 showing actual EPS of null against an estimate of $3.3449 and actual revenue of null against an estimate of $1.109 billion, and Q3 2025 reporting actual EPS of $2.92 against an estimate of $2.81866 and actual revenue of $978.128 million. The company has shown a consistent ability to meet or exceed analyst expectations in recent periods, with EPS beats in Q4 2024 ($2.61 vs $2.49347), Q1 2025 ($2.52 vs $2.47276), Q2 2025 ($2.65 vs $2.62946), and Q3 2025 ($2.92 vs $2.81866), and Q3 2026 ($3.72 vs $3.666). Recent news highlights a record fiscal third-quarter revenue of $1.214 billion, a 39% year-over-year increase, driven by strong optical and non-optical segments, with record non-GAAP EPS of $3.72 exceeding guidance due to execution and favorable foreign exchange. However, component shortages impacted Datacom shipments, and revenue slightly missed expectations, leading to a post-market price decline. Investors will be watching for management's commentary on market dynamics, supply chain navigation, and the outlook for future results, particularly concerning the balance between strong earnings and revenue performance amidst potential constraints. Key will be the company's ability to manage supply chain issues and capitalize on demand in its core segments, as well as analyst sentiment shifts, such as a recent price target reduction to $744.00 by Argus Research, balanced against a Zacks Rank #2 (Buy) driven by upward EPS estimate revisions.

EPS

EstBeatMiss
$2.29$2.69$3.10$3.50$3.91Q4'24Q1'25Q2'25Q3'25Q3'26Q2'26
QtrEstActual+/−
Q2'26$3.34 - -
Q3'26$3.67$3.72+1.5%
Q3'25$2.82$2.92+3.6%
Q2'25$2.63$2.65+0.8%
Q1'25$2.47$2.52+1.9%
Q4'24$2.49$2.61+4.7%

Revenue

EstBeatMiss
$776M$901M$1.0B$1.1B$1.3BQ4'24Q1'25Q2'25Q3'25Q3'26Q2'26
QtrEstActual+/−
Q2'26$1.1B - -
Q3'26$1.2B$1.2B-0.1%
Q3'25 - $978M -
Q2'25 - $910M -
Q1'25 - $872M -
Q4'24 - $834M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

FN Stock Snapshot

FN is currently trading at $450.63, giving Fabrinet a market cap of 17.44B and a P/E ratio of 41.4. Today's range spans $440.20–$455.61, with shares opening at $453.00 and moving down $9.56 (2.1%) from the prior close. DailyIQ's technical score sits at 14/100 (SELL) with a news sentiment reading of 70/100.

Over the past year FN has traded between $272.49 and $748.89 - the current price is +65.4% off the 52-week low and -39.8% from the high. 21 analysts cover the stock with a Buy consensus and a mean 12-month target of $749.11 (range $635.00–$850.00), implying upside of +66.2%.

Fabrinet (FN) is at $450.63 (in the lower half of its 52-week range in $272.49–$748.89), carrying a SELL signal (14/100) and bullish sentiment (70/100). The current P/E ratio stands at 41.4. The 17.44B market cap in Technology means this name is well-covered by analysts who can accelerate the downside through rating cuts and target reductions - a feedback loop that smaller stocks with less coverage don't face to the same degree.

The current SELL phase for FN (14/100) at $450.63 (in the lower half of its 52-week range) suggests that the market is discounting either a fundamental deterioration or a sector headwind that hasn't fully appeared in the earnings line yet. Sentiment at 70/100 (bullish) confirms that news flow is not providing a counternarrative. At 17.44B in Technology capitalization, FN has the liquidity for institutional exits to be orderly — but orderly doesn't mean shallow within the $272.49–$748.89 range.