Tuesday, February 5, 2013

Why Fabrinet Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Fabrinet (NYSE: FN  ) have jumped today by as much as 12% after the company reported second-quarter earnings.

So what: Revenue in the fiscal second quarter totaled $167.4 million, a jump of 73.3% from a year ago. Non-GAAP net income came in at $13.8 million, or $0.39 per share. That bottom-line result is more than double the profit the company generated a year ago.

Now what: CEO Tom Mitchell said the company was able to deliver solid results despite a tough macroeconomic backdrop. Outlook for the current quarter was also encouraging, with Fabrinet expecting revenue in the range of $147 million to $151 million, with non-GAAP earnings per share of $0.29 to $0.31. On a GAAP basis, investors can expect a bottom-line result of $0.26 to $0.28 per share in profits.

Interested in more info on Fabrinet? Add it to your watchlist by clicking here.

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