On January 2, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). Further, this optical
packaging and precision optical manufacturing company has
outperformed the Zacks Consensus Estimates in the last three
quarters with an average magnitude of 50.8%.
The Rank Drivers
On November 5, 2012, Fabrinet reported first quarter 2013
earnings of 33 cents per share, breezing past the Zacks Consensus
Estimate by 17.9%.
However, net revenue declined 14.9% year over year to $158.6
million, primarily due to reduced customer demand for Fabrinet's
optical communications manufacturing services in fiscal 2012. In
addition, the temporary suspension of production at some of
Fabrinet's facilities also led to the decline in the top
Fabrinet expects second quarter 2013 revenue to be in the
range of $159 million to $163 million. GAAP net income per share
is expected to be in the range of 32 cents to 34 cents while
non-GAAP earnings are projected in the range of 35 cents to 37
cents a share.
The Zacks Consensus Estimate for the fiscal year, ending June
2013, has increased nearly 9.9% in the past 60 days to $1.33 per
share, as the sole estimate for the period was revised higher.
For fiscal 2014, ending June 2014, the Zacks Consensus Estimate
has remained steady at $1.48.
One of the company's peers,
Oplink Communications Inc.
) has a Zacks Rank of #2 (Buy) after it posted a 36.8% increase
in its third quarter 2012 earnings per share. Oplink's earnings
have also outperformed the Zacks Consensus Estimates in the last
three quarters with an average magnitude of 126.2%.
FABRINET (FN): Free Stock Analysis Report
OPLINK COMMNCTN (OPLK): Free Stock Analysis
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