Why Fabrinet (NYSE: FN) stock is going gangbusters today

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Fabrinet (NYSE: FN) stock rose 10.5% on 4th Feb, 2020 (As of 10:34 am GMT-5; Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. The company has reported the Non-GAAP net income for the second quarter of fiscal year 2020 of $37.7 million, compared to non-GAAP net income of $36.5 million for the second quarter of fiscal year 2019. Non-GAAP net income for the second quarter of fiscal year 2020 had included a foreign exchange loss of $1.0 million, compared to a foreign exchange loss of $0.4 million, for the second quarter of fiscal year 2019. The sequential growth across nearly all the markets resulted in a record quarterly revenue performance. The company expects to see continued year-over-year growth in the third quarter, even after considering the impact of the coronavirus outbreak in the guidance. The company is global leader in advanced precision optical/ electronic/mechanical manufacturing services, has long-lasting customer relationships with programs extending from new product introduction (NPI) to volume production. The company has seasoned management team with extensive and diversified manufacturing experience in OEM and EMS industries. Further, the company has differentiated business model with significant barriers to entry and Unique Expertise in Precision Manufacturing Technologies Geared To Next-Generation Products in Diverse Industries

FN in the second quarter of FY 20 has reported the adjusted earnings per share of $1, beating the analysts’ estimates for the adjusted earnings per share of 93 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.9 percent to $426.22 million in the second quarter of FY 20, beating the analysts’ estimates for revenue by 3.08%.

For the third fiscal quarter of 2020 ending March 27, 2020, the company expects third quarter revenue to be in the range of $410 million to $418 million, versus the consensus of $414.21 million. Non-GAAP net income per diluted share is projected to be in the range of $0.92 to $0.95, based on approximately 37.9 million fully diluted shares outstanding, versus the consensus of $0.95.

On the other hand, the company has appointed Csaba Sverha as the Chief Financial Officer, effective from February 17, 2020, as part of a CFO search that was announced in August 2018. Mr. Sverha currently holds the position of Vice President of Operations Finance at Fabrinet, who had joined the company in March 2018.

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