Fabrinet (NYSE:FN) is a company that specializes in assembling optical, electro-mechanical, and electronic devices. It plays a crucial role in the tech industry by providing manufacturing services to original equipment manufacturers. As a key player in its field, Fabrinet competes with other companies that offer similar manufacturing services.
On August 18, 2025, Fabrinet is set to release its quarterly earnings. Wall Street analysts predict an earnings per share (EPS) of $2.64 and revenue of approximately $882 million. This anticipated year-over-year increase in earnings is expected to be driven by higher revenues, as highlighted by the company's performance in its core assembly services.
Fabrinet's stock price could be significantly influenced by how its actual results compare to these estimates. If the company surpasses expectations, the stock may experience an upward movement. Conversely, a miss could lead to a decline. The sustainability of any immediate price changes will largely depend on management's discussion of business conditions during the earnings call.
The company's financial metrics provide additional context for investors. Fabrinet has a price-to-earnings (P/E) ratio of approximately 37.3, indicating how much investors are willing to pay per dollar of earnings. Its price-to-sales ratio is about 3.7, reflecting the market's valuation of the company's revenue. The enterprise value to sales ratio is around 3.6, suggesting the company's total valuation relative to its sales.
Fabrinet's financial health appears strong, with a very low debt-to-equity ratio of approximately 0.003, indicating minimal leverage. The current ratio is around 3.32, suggesting strong liquidity and the ability to cover short-term liabilities. Additionally, the enterprise value to operating cash flow ratio is approximately 33.1, providing insight into the company's cash flow generation relative to its valuation. The earnings yield is about 2.68%, offering a perspective on the return on investment.
