Fabrinet slumps 24% as revenue forecast disappoints

Fabrinet

06/02/2024 15:47

** Shares of optical equipment maker Fabrinet  F.N  fall
nearly 24% to $171.09, the biggest drop in 13 years
    ** Co sees Q3 revenue of $705 mln-$725 mln vs analysts' est
of $723.96 mln, as per LSEG data; co's Q3 adj. EPS forecast of
$2.08-$2.15 meets est. at $2.12
    ** Co reports Q2 adj. EPS of $2.08 on revenue of $712.7 mln
vs analysts' estimate of $2.03 on revenue of $696.4 mln, as per
LSEG data 
    ** "While Telecom was stronger in FQ2 and expected to grow
seq in FQ3 driven by 400ZR DCI revs, also AI driven, given
recent strength in the shares and premium valuation metrics, we
move to the sidelines," Northland Capital Markets said in a
note, downgrading the stock to "market perform" from
"outperform"
    ** Co forecasts moderation in sequential datacom growth
    ** Stock, which hit a record high on Monday, is down 10.2%
YTD

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))