Why Fabrinet (FN) Could Beat Earnings Estimates Again

Core Viewpoint - Fabrinet (FN) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by its strong historical performance in earnings surprises [1]. Company Performance - Fabrinet has a track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 3.00% [2]. - In the last reported quarter, Fabrinet achieved earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.47 per share, resulting in a surprise of 2.02% [3]. - For the previous quarter, the company was expected to report earnings of $2.51 per share but delivered $2.61 per share, yielding a surprise of 3.98% [3]. Earnings Estimates and Predictions - Estimates for Fabrinet have been trending upward, aided by its history of earnings surprises [6]. - The stock currently has a positive Zacks Earnings ESP of +1.14%, indicating increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8].