Bullish indicating open at $55-$60, IPO prices at $37
BANGKOK - Fabrinet (NYSE:FN) shares plunged 9.4% after the optical manufacturing services provider reported third quarter earnings that fell short of analyst expectations, despite revenue beating estimates.
The company posted adjusted earnings per share of $2.52 for the quarter ended March 28, 2025, missing the consensus forecast of $2.54. Revenue came in at $871.8 million, surpassing analyst estimates of $858.3 million and representing a 19.2% increase YoY.
While Fabrinet’s top line performance was strong, investors appeared disappointed by the earnings miss. The company cited higher costs as impacting profitability.
"We had a very strong third quarter with revenue of $872 million, which was above our guidance range," said CEO Seamus Grady. "We delivered another strong telecom performance with growth that more than offset an anticipated sequential decline in datacom revenue."
For the fiscal fourth quarter, Fabrinet expects revenue between $860 million and $900 million, compared to the $885.8 million consensus estimate. The company forecasts adjusted EPS of $2.55 to $2.70, versus analyst expectations of $2.65.
Despite the mixed results, management remained optimistic about future prospects. "Looking ahead, we remain confident in our ability to deliver strong execution in the fourth quarter and into fiscal 2026," Grady added.
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