FN

Coherent COHR appears to offer a more compelling investment opportunity following its recent post-earnings correction. The stock retreated despite the company delivering a strong quarterly performance, raising its outlook and highlighting record backlog visibility extending through 2028. Management also reaffirmed that fiscal 2027 growth is expected to exceed fiscal 2026 levels while continuing to ramp production of its 6-inch indium phosphide platform, a critical technology supporting next-generation AI networking. The sharp decline came after an extraordinary rally rather than any deterioration in business fundamentals, reflecting a reset in investor expectations. COHR remains up an impressive 218% over the past year, even after declining 19% over the past month. Image Source: Zacks Investment Research Although the stock trades at a forward 12-month price-to-earnings ratio of 36.29X, above the industry average of 20.89X, the recent correction has made the valuation more reasonable relative to its long-term growth prospects. Image Source: Zacks Investment Research Supporting this view, the Zacks Consensus Estimate for 2026 earnings is pegged at $5.47, indicating 55% year over year growth. The consensus mark for 2026 revenues stands at 7.06 billion, suggesting 21.5% year over year growth. Compared with optical networking peers Lumentum LITE and Fabrinet (FN), Coherent continues to benefit from stronger exposure to AI infrastructure investments and increasing demand for high-speed optical connectivity. While LITE and FN are well-positioned to capitalize on data center upgrades, Coherent has strengthened its competitive standing through manufacturing expansion, long-term customer commitments and improved backlog visibility. The company is also demonstrating an ability to translate robust demand into profitable growth while maintaining confidence in future expansion. As AI infrastructure spending continues to accelerate, Lumentum, Fabrinet and Coherent are all expected to benefit. However, Coherent currently combines superior growth visibility, expanding production capacity and a more attractive post-correction valuation, making it stand out among its optical networking peers. COHR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Tod...

It has been about a month since the last earnings report for Fabrinet (FN). Shares have added about 6.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Fabrinet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Fabrinet delivered strong third-quarter fiscal 2026 results, supported by broad-based program momentum. Non-GAAP earnings were $3.72 per share, up 47.6% year over year and beat the Zacks Consensus Estimate by 3.91%. Quarterly revenues rose 39.3% year over year to $1.214 billion, topping the consensus mark by 1.56%. Strength in Optical Communications remained the key engine, with data center interconnect (DCI) revenues reaching $196.9 million in the reported quarter, reflecting 90.4% year-over-year growth. Optical Communications remained the company’s largest business (73.2% of revenues), generating $888.7 million of revenues in the quarter, which was up 35.3% year over year. Within Optical Communications, the mix tilted further toward Telecom. Management attributed the quarter’s strong optical performance to robust demand across a wide range of telecom products, even as certain datacom shipments were constrained by component availability. Telecom revenues climbed to a record $628.3 million in the reported quarter (up 54.7% year over year), extending the company’s recent momentum in the category. DCI was a notable contributor, with management highlighting strong longer-term DCI trends and continued program activity with major industry participants. Datacom revenues were $260.4 million (up 3.7% year over year) and were pressured by broader component and material supply constraints. On the earnings call, Fabrinet noted that demand exceeded what it was able to ship, citing bottlenecks across multiple inputs, including lasers, memory and certain ASICs. The company emphasized that the issue was supply-driven rather than demand-driven and expects volatility to persist in the near term. While Datacom shipments were constrained in the quarter, management pointed to tangible progress on customer diversification. Fabrinet said it has completed qualification and begun shipping two datacom transceiver programs directly to...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Strategic entry into the defense and homeland security markets targets high-margin, premium-priced opportunities where traditional radar and camera systems face limitations in drone detection and all-weather surveillance. Revenue of $7.1 million in Q1 was impacted by the shifting of certain NRE milestones into future quarters, primarily due to OEM requests for additional content and accelerated activity timelines. Achieved record unit shipments in Q1, representing approximately half of the total volume shipped in all of 2025, driven by the successful production ramp at Fabrinet. The non-automotive 'Physical AI' segment is expected to grow from 1% of 2025 revenue to up to 10% in 2026, reflecting urgent demand for LiDAR in security and autonomous delivery applications. Strategic positioning for future automotive programs centers on the Innoviz3, which features a smaller form factor and integrated color imaging to meet OEM requirements for behind-the-windshield installation. Management attributes long-term growth potential to the transition from NRE-heavy revenue (70% in 2025) toward higher-margin LiDAR series production as existing programs reach SOP. Reiterated full-year 2026 revenue guidance of $67 to $73 million, assuming the recovery of delayed NRE payments and continued acceleration of unit shipments in the second half of the year. Guidance assumes the addition of 2 to 3 new programs in 2026, supported by active participation in multiple RFQs with decisions expected in the second half of the year. Anticipates significant gross margin improvement later in 2026 as higher production volumes lead to better absorption of fixed costs at the Fabrinet facility. Expects to secure $20 to $30 million in new NRE payment plans during 2026, maintaining NREs as a stable dollar-basis component of the business during the transition to series production. The outlook for Level 4 autonomous platforms suggests potential for faster expansion than initially expected, particularly within the robotaxi and autonomous trucking ecosystems. Identified a critical gap in the defense market for drone detection 'under the radar,' where LiDAR's fine angular resolution provides a unique layer of protection against small, low-altitude targe...

Two companies currently drawing significant investor interest in the Zacks Computer and Technology sector are Fabrinet FN and Applied Optoelectronics AAOI. Fabrinet is a provider of advanced optical packaging and precision optical, electromechanical and electronic manufacturing services to original equipment manufacturers of complex products. Applied Optoelectronics designs and manufactures fiber-optic networking products for internet data centers, cable television, telecommunications and fiber-to-the-home end markets. Both FN and AAOI reported contrasting quarterly results earlier in the month. Fabrinet reported impressive results for the third quarter of fiscal 2026 (ended March 27, 2026), driven by strong momentum across multiple programs. Adjusted earnings came in at $3.72 per share, reflecting a 47.6% increase year over year and surpassing the Zacks Consensus Estimate by 3.9%. Revenues for the quarter climbed 39.3% year over year to $1.214 billion, exceeding the consensus estimate by 1.56%. Growth in the Optical Communications segment remained robust, with revenues rising 35% year over year to $888.7 million. This performance was largely fueled by a 55% increase in Telecom revenues, supported by strong demand across a broad range of products. Within the Telecom segment, data center interconnect revenues jumped 90% year over year and increased 38% sequentially. Further strengthening investor sentiment, Fabrinet issued an upbeat outlook for the fourth quarter of fiscal 2026, projecting revenues between $1.25 billion and $1.29 billion and adjusted earnings in the range of $3.72-$3.87 per share. In contrast, Applied Optoelectronics reported a wider-than-expected loss for the first quarter of 2026 due to elevated costs. The company posted an adjusted loss of 7 cents per share, compared with the Zacks Consensus Estimate of a loss of 5 cents. This compares with a loss of 2 cents per share in the year-ago quarter and a loss of 1 cent in the prior quarter. Quarterly revenues increased 51.4% year over year to $151.1 million, although they fell short of the consensus estimate by 3.4%. On a sequential basis, revenues grew 12.5%, supported by solid demand in both the data center and CATV businesses. However, margins came under pressure due to product mix changes and higher operating costs. Looking ahead to the second quarter of 2026, Applied Optoelectronics expects...

Fabrinet (NYSE:FN) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.2% to hit US$1.2b. Statutory earnings per share (EPS) came in at US$3.45, some 3.3% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the latest results, the eight analysts covering Fabrinet are now predicting revenues of US$5.66b in 2027. If met, this would reflect a huge 34% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 39% to US$16.29. In the lead-up to this report, the analysts had been modelling revenues of US$5.48b and earnings per share (EPS) of US$15.89 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings. Check out our latest analysis for Fabrinet With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to US$749per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fabrinet analyst has a price target of US$850 per share, while the most pessimistic values it at US$635. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Fabrinet is an easy business to forecast or the the analysts are all using similar assumptions. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Fabrinet's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to...

Fabrinet FN delivered strong third-quarter fiscal 2026 results, supported by broad-based program momentum. Non-GAAP earnings were $3.72 per share, up 47.6% year over year and beat the Zacks Consensus Estimate by 3.91%. Quarterly revenues rose 39.3% year over year to $1.214 billion, topping the consensus mark by 1.56%. Strength in Optical Communications remained the key engine, with data center interconnect (DCI) revenues reaching $196.9 million in the reported quarter, reflecting 90.4% year-over-year growth. Optical Communications remained the company’s largest business (73.2% of revenues), generating $888.7 million of revenues in the quarter, which was up 35.3% year over year. Fabrinet price-consensus-eps-surprise-chart | Fabrinet Quote Within Optical Communications, the mix tilted further toward Telecom. Management attributed the quarter’s strong optical performance to robust demand across a wide range of telecom products, even as certain datacom shipments were constrained by component availability. Telecom revenues climbed to a record $628.3 million in the reported quarter (up 54.7% year over year), extending the company’s recent momentum in the category. DCI was a notable contributor, with management highlighting strong longer-term DCI trends and continued program activity with major industry participants. Datacom revenues were $260.4 million (up 3.7% year over year) and were pressured by broader component and material supply constraints. On the earnings call, Fabrinet noted that demand exceeded what it was able to ship, citing bottlenecks across multiple inputs, including lasers, memory and certain ASICs. The company emphasized that the issue was supply-driven rather than demand-driven and expects volatility to persist in the near term. While Datacom shipments were constrained in the quarter, management pointed to tangible progress on customer diversification. Fabrinet said it has completed qualification and begun shipping two datacom transceiver programs directly to a hyperscale customer, with an initial ramp expected to start in the fourth quarter and build through fiscal 2027. The company also discussed co-packaged optics (CPO) as a strategic focus area. Management said it is working on multiple CPO programs with three customers and is already shipping in small volumes, with most of the revenue opportunity still ahead. Fabrinet also disclosed a minor...

On May 4, Fabrinet FN, a provider of advanced optical packaging and precision optical, electromechanical and electronic manufacturing services to original equipment manufacturers of complex products, reported impressive third-quarter fiscal 2026 results (ended March 27). The high-flying tech stock reported better-than-expected earnings per share and revenues in the fiscal third quarter. The question that naturally arises now is whether investors should take advantage of the outperformance and buy shares of the company, which is well-poised to benefit from the solid adoption of AI and the democratization of IoT, which are transforming robotics, industrial automation, transportation systems, retail and healthcare. Let us delve deeper to answer the question. Fabrinet reported earnings of $3.72 per share in the third quarter of fiscal 2026 (excluding 27 cents from non-recurring items), beating the Zacks Consensus Estimate by 3.9%. The figure increased 47.6% year over year. Revenues of $1.21 billion increased 39.3% on a year-over-year basis, exceeded the guidance and surpassed the consensus mark by 1.6%. Optical Communications revenue growth increased 35% to $888.7 million from a year ago, driven by a 55% year-over-year growth in Telecom revenues, which was fueled by strong growth in a wide range of products. Within Telecom, data center interconnect revenues surged 90% from a year ago and 38% sequentially. In non-optical communications, revenues jumped 52% to $325.6 million year over year and 8% sequentially. The growth was driven primarily by high-performance computing revenues as FN’s customers transitioned to their latest product generation. Automotive revenues moderated in the fiscal third quarter as anticipated, with revenues decreasing modestly from the fiscal second quarter. Fabrinet expects fourth-quarter revenues to be in the range of $1.25 billion to $1.29 billion. Adjusted earnings per share are expected to be in the range of $3.72 to $3.87. The Zacks Consensus Estimate is pegged at $3.80 on $1.26 billion in revenues. This was the fourth successive earnings beat by FN in the last twelve months. The average beat is 2.6%. FN ended the fiscal third quarter with about $945.9 million in cash and short-term investments and no debt, supporting expansion plans and financial flexibility. The company also had $169 million remaining under its share repurchase aut...

Fabrinet (FN) came out with quarterly earnings of $3.72 per share, beating the Zacks Consensus Estimate of $3.58 per share. This compares to earnings of $2.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.82%. A quarter ago, it was expected that this company that assembles optical, electro-mechanical and electronic devices for other companies would post earnings of $3.26 per share when it actually produced earnings of $3.36, delivering a surprise of +3.07%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Fabrinet, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $1.21 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $871.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fabrinet shares have added about 55.2% since the beginning of the year versus the S&P 500's gain of 5.6%. While Fabrinet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fabrinet was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in th...

Fabrinet reported record fiscal Q3 revenue of $1.214 billion (up 39% YoY) and non‑GAAP EPS of $3.72, beating guidance, and guided Q4 revenue of $1.25 billion to $1.29 billion with EPS of $3.72–$3.87. Growth was driven by Optical Communications—Telecom and Data Center Interconnect surged (DCI revenue of $197 million, +90% YoY)—while Datacom shipments were constrained by broad component shortages despite “exceptionally strong” demand; Fabrinet has qualified two 800G hyperscaler programs that should ramp into fiscal 2027 and expects multiple merchant ramps. Fabrinet is investing to support future demand, including a roughly $32 million private placement in Raytek Semiconductor to advance co‑packaged optics, buying an eight‑acre Thailand campus for $11 million, and progressing on Building 10 to add about 2 million square feet of capacity. Interested in Fabrinet? Here are five stocks we like better. The Volatility Harvester That Thrives in Market Chaos Fabrinet (NYSE:FN) reported record fiscal third-quarter results as management pointed to accelerating demand across parts of its optical and non-optical portfolio, while also flagging component shortages that limited Datacom shipments. Chairman and CEO Seamus Grady said the company delivered “an outstanding financial performance” in the quarter ended March 27, 2026, with revenue above the company’s guidance range at a record $1.214 billion, representing 39% year-over-year growth. Non-GAAP earnings per diluted share came in at a record $3.72, also above guidance, reflecting what Grady described as continued strong execution. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Home Depot Stock Keeps Falling—Analysts Say the Upside Is Still There Chief Financial Officer Csaba Sverha said revenue increased 7% sequentially from the prior quarter. He attributed the earnings outperformance to “strong execution and FX evaluation tailwinds.” Optical Communications revenue totaled $889 million, up 35% from a year ago and 7% sequentially, according to Sverha. Within that segment, Telecom revenue was a record $628 million, climbing 55% year-over-year and 13% from the prior quarter. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Franco-Nevada May Be the Best Way to Play a Commodity Supercycle Grady highlighted particularly strong performance in Data Center Interconnect (DCI). “Data Cen...

Dow Jones Futures: Iran attacks sparked stock market losses Monday. Palantir stock dropped on earnings late.

Revenue growth accelerated to 39% year-over-year, driven by a 55% surge in telecom revenue and a 52% increase in non-Optical Communications revenue, fueled by robust demand for high-performance compute and AI-driven infrastructure. Telecom outperformance was fueled by a 90% year-over-year increase in Data Center Interconnect (DCI) revenue, which reached $197 million. Datacom revenue grew 4% year-over-year but declined 6% sequentially due to supply shortages in lasers, memory, and ASICs; management noted that underlying demand far exceeded actual shipments. Successfully diversified the datacom business by securing and beginning shipments for two transceiver programs directly to a hyperscale customer. Deepened the High-Performance Compute (HPC) relationship through new program wins and expanded scope for accelerated computing infrastructure. Strategic evolution into Co-Packaged Optics (CPO) is being supported by a minority investment in Raytec Semiconductor to enhance wafer-level packaging capabilities. Operational leverage improved as operating expenses declined to 1.4% of revenue, despite short-term gross margin headwinds from FX and program ramps. Management expects the supply-demand imbalance in datacom to persist into Q4, with gradual improvement anticipated throughout fiscal 2027. Direct hyperscale and merchant transceiver programs are expected to ramp steadily and become meaningful revenue contributors during fiscal 2027. The $150 million quarterly revenue milestone for the HPC program is now expected to be reached in early fiscal 2027 due to a technology transition. Building 10 construction is being accelerated, with the first floor ready in June and a second floor by September, contributing to a total company-wide capacity of approximately $8.5 billion. CPO and Optical Circuit Switch (OCS) opportunities are viewed as significant long-term growth vectors that are currently in the early stages of ramping. Invested approximately $32 million for a 14% stake in Raytec Semiconductor to secure advanced packaging capabilities for the CPO ecosystem. Acquired an 8-acre campus in Navanakorn, Thailand, for $11 million to provide immediate clean-room expansion and long-term capacity flexibility. Gross margins faced a 30 basis point sequential decline due to foreign exchange revaluation and inefficiencies from ramping multiple new programs. Identified global shorta...

Image source: The Motley Fool. May 4, 2026, 5 p.m. ET Chairman and Chief Executive Officer — Seamus Grady Chief Financial Officer — Csaba Sverha Seamus Grady, Chairman and Chief Executive Officer, and Csaba Sverha, Chief Financial Officer. This call is being webcast, and a replay will be available on the Investor section of our website located at investor.fabrinet.com. During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the Investors section of our website for important information including our earnings press release and investor presentation, which include our GAAP to non-GAAP reconciliation as well as additional details of our revenue breakdown. In addition, today's discussion will contain forward-looking statements about the future financial performance of the company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations. Statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise them in light of new information or future events except as required by law. For a description of the risk factors that may affect our results, please refer to our recent SEC filings, in particular, the section captioned Risk Factors in our Form 10-Q filed on 02/03/2026. We will begin the call with remarks from Seamus and Csaba, followed by time for questions. I would now like to turn the call over to Fabrinet's Chairman and CEO, Seamus Grady. Seamus? Thank you. Seamus Grady: We delivered an outstanding financial performance in the third quarter, along with several notable achievements that we believe can extend our strong growth trends into the fourth quarter and fiscal year 2027. Revenue was above our guidance range at a record $1.214 billion, with year-over-year growth accelerating to an impressive 39%. Record non-GAAP EPS of $3.72 also exceeded our guidance range, reflecting continued excellent execution. Looking at our quarter by product area, Optical Communications revenue growth increased to 35% from a year ago. This was driven by 55% year-over-year growth in telecom revenue, which was fueled by strong growth in a wide range of products. Within telecom, data center interconnect revenue grew a robust 90% from a year ago and 38% from Q2, and we believe strong longer-term DCI g...