Fabrinet shares experienced a significant rally on Friday, climbing 13.8% to close at $503.99. This surge concluded a week of notable volatility for the stock, which traded between $456.50 and $509.77 with volume exceeding one million shares.
Earnings Exceed Expectations
The optical and electronics manufacturing specialist reported quarterly revenue of $1.13 billion and non-GAAP earnings per share of $3.36, both surpassing the company's previous guidance. For the upcoming quarter, management projects revenue between $1.15 billion and $1.20 billion, with non-GAAP EPS expected in the range of $3.45 to $3.60.
Analyst Sentiment Turns Bullish
Multiple financial firms revised their outlooks following the earnings release. Barclays analyst Tim Long increased his price target to $548 from $537, maintaining an Overweight rating. He cited accelerating demand in high-performance computing infrastructure as a key driver. Zacks Research upgraded the stock to a "strong-buy" recommendation.
Despite the positive results, some analysts noted ongoing supply chain challenges affecting certain datacom segments and expressed concerns about valuation levels following the recent price appreciation.
Market Context and Upcoming Catalysts
The rally occurred alongside broader market gains, with the S&P 500 and Nasdaq Composite both advancing approximately 2%. Traders will monitor whether the stock can maintain momentum above the $500 level when markets reopen Monday.
Macroeconomic data releases scheduled for next week, including January employment figures and Consumer Price Index data, may influence trading across growth-oriented sectors. Fabrinet's next earnings report is scheduled for May 4.