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What: Shares of Fabrinet (NYSE:FN) finished up 11% today after it flew past estimates in its quarterly report.
So what: The electro-optical supply-chain specialist posted a per-share profit of $0.55, better than estimates of $0.47, while revenue beat expectations as well, growing 8.2% to $171.6 million. CEO Tom Mitchell described the quarter as a "strong start" to the year, and said, "With our strong customer relationships and expanding pipeline of new business, I am confident that we will be able to deliver a strong year of profitable growth." Fabrinet issued guidance ahead of Wall Street expectations, eyeing sales of $170 million to $174 million for the current quarter, and adjusted EPS of $0.40-$0.42.
Now what: It's hard to argue with a report like this, beating on both top and bottom lines and providing upside guidance. With a P/E of just 9.6 and solid sales growth, I'd expect Fabrinet shares to move higher if it can deliver on its promising guidance.
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