Fabrinet, a leading electronic manufacturing services company, saw its shares drop by 23% to $171.21 following the release of its second-quarter earnings report. The company reported quarterly earnings of $80.8 million, or $1.89 per share, compared to $75.5 million, or $1.71 per share, in the same quarter of the previous year.
Analysts polled by FactSet had anticipated earnings of $73.9 million, or $2.08 per share, making Fabrinet’s results fall short of their expectations. Despite the miss, Fabrinet reported strong revenue for the quarter, coming in at $712.7 million, surpassing last year’s $668.7 million and beating the projected $696.3 million.
Looking ahead to the third quarter, Fabrinet expects revenue between $705 million and $725 million. While this is in line with analysts’ forecast of $707 million, the company’s projected earnings for the period range from $1.89 to $1.96 per share, below the expected $2.10 per share anticipated by analysts. Additionally, Fabrinet is aiming for adjusted earnings of $2.08 to $2.15 per share, while analysts have predicted earnings of $2.08 per share.
Overall, Fabrinet’s disappointing earnings report has prompted a significant decline in its stock value. Investors will be closely monitoring the company’s performance in the coming months as it seeks to rebound from this setback.
