Fabrinet (FN) reported record revenue of $753.3 million for the fourth consecutive quarter during its latest earnings meeting, marking a 15% increase year-over-year. Earnings per share reached $2.41. The company, specializing in high-complexity manufacturing in sectors such as telecommunications and medical devices, operates primarily in Thailand and the U.S. Additionally, its Board of Directors has authorized a share repurchase program of up to $139.5 million.
Analysts have raised earnings estimates, now giving Fabrinet a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings estimates have increased by 7.2%, with a projected growth of 19.5% year-over-year. For fiscal year 2025, earnings are expected to grow by 11.6%, with revenue projected to reach $3.2 billion, an 11.3% increase this year.
Fabrinet’s shares are trading at a forward earnings multiple of 29.3x, significantly higher than its ten-year median of 16.6x, reflecting its strong market position. Despite the elevated valuation, the company is perceived as a viable long-term investment for those seeking exposure to high-quality manufacturing sectors.
