|
 Shares of Fabrinet tumbled 17% in afternoon trading Tuesday, enough to lead all of the NYSE-listed losers, after the optical communications equipment company reported fiscal fourth-quarter results that beat expectations but provided a downbeat first-quarter outlook. The company had reported late Monday net income for the quarter to June 28 that rose to $30.7 million, or 88 cents a share, from $21.6 million, or 60 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted EPS rose to $1.00 from 81 cents, and beat the FactSet consensus of 94 cents. Revenue rose 17% to $405.1 million to top the FactSet consensus of $399.7 million. For the first quarter, Fabrinet said it expects adjusted EPS of 80 cents to 84 cents and revenue of $386 million to $394 million. The FactSet consensus as of the end of July were 96 cents for EPS and $407.3 million for revenue. Regarding the outlook, Chief Executive Seamus Grady said on the post-earnings conference call with analysts that the timing of changes to customer supply chains as they work through the restart of shipments to Huawei will temporarily hurt some of Fabrinet's optical communications business, while the industrial laser market is expected to slow down in the near term. The stock, on track for the biggest one-day drop since August 2014, has lsot 8.3% year to date, while the SPDR Technology Select Sector ETF has rallied 28% and the S&P 500 has gained 16%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
As stocks require economic growth to expand in price (in theory, anyway,) that led to the capper of my headline: "And You Should Sell Your Stocks."
|
RELATED ARTICLES | | |
|
Stocks are climbing fast as fears over a U.S. recession appear to be easing. According to market history, this upward momentum could continue for another month.
|
|
 Europe stocks on Tuesday turned lower, as political risk re-emerged in the wake of Italian Prime Minister Guiseppe Conti resigning.
|
RELATED ARTICLES | | |
|
Private Label