Sometimes the market doesn't make sense at first glance. Fabrinet (FN) just posted a knockout quarter with record numbers across the board, and investors responded by dumping the stock in after-hours trading Monday.
The Numbers Tell a Strong Story: Fabrinet delivered earnings of $3.36 per share, handily beating the $3.25 consensus estimate. Revenue hit $1.13 billion, crushing expectations of $1.08 billion and surging from $833.61 million a year ago. Those are the kind of results companies dream about.
"We delivered an exceptional second quarter with record revenue and earnings that significantly exceeded our guidance ranges," CEO Seamus Grady said.
Grady pointed to "multiple large, key strategic programs across our business" driving the outstanding performance, while "excellent execution and strong operating leverage generated record earnings per share that were also above our guidance range."
Looking Ahead: The guidance didn't disappoint either. Fabrinet expects third-quarter adjusted EPS between $3.45 and $3.60, above the $3.43 analyst estimate. Revenue is projected at $1.15 billion to $1.20 billion versus the $1.13 billion consensus.
Yet Fabrinet shares tumbled 10.73% to $446 in extended trading, proving once again that beating expectations doesn't always mean winning over Wall Street.
