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Market Overview

Fabrinet's Earnings: A Preview

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On Monday, February 01, Fabrinet (NYSE:FN) will release its latest earnings report. Benzinga's outlook for Fabrinet is included in the following report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Fabrinet reporting earnings of $1.04 per share on revenue of $433.70 million. Fabrinet reported a per-share profit of $1.0 when it published results during the same quarter last year. Sales in that period totaled $426.22 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 4.0% increase in the company's earnings. Revenue would be up 1.76% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.98 0.87 0.93 0.93
EPS Actual 1.05 0.96 0.92 1
Revenue Estimate 421.65 M 386.86 M 414.09 M 413.21 M
Revenue Actual 436.64 M 405.11 M 411.21 M 426.22 M

Stock Performance

Shares of Fabrinet were trading at $80.28 as of January 27. Over the last 52-week period, shares are up 25.11%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fabrinet is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings