Fabrinet (FN) Moves 4.9% Higher: Will This Strength Last?

Company Overview - Fabrinet (FN) shares increased by 4.9% to close at $179.42, following a notable trading volume, contrasting with an 11.8% loss over the past four weeks [1] - The company specializes in assembling optical, electro-mechanical, and electronic devices for other companies [3] Demand and Growth - The optimism surrounding Fabrinet is driven by strong demand for its data center interconnect products and coherent ZR modules [2] - Fabrinet has expanded its manufacturing space by 50% at the Chonburi campus to support long-term growth [2] Financial Performance Expectations - Fabrinet is expected to report quarterly earnings of $2.60 per share, reflecting an 8.8% year-over-year increase [3] - Revenue projections stand at $860.76 million, indicating a 17.7% increase from the same quarter last year [3] Earnings Estimate Trends - The consensus EPS estimate for Fabrinet has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [5] - Empirical research indicates that trends in earnings estimate revisions are closely correlated with near-term stock price movements [4] Industry Context - Fabrinet is part of the Zacks Electronics - Miscellaneous Components industry, where another company, Ballard Power Systems (BLDP), saw a 1.9% increase in its stock price but has returned -14.3% over the past month [5] - Ballard's consensus EPS estimate has decreased by 10.6% over the past month, with a year-over-year change of +14.3% [6]