By Sam Boughedda
Investing.com — Fabrinet (NYSE:FN), the electro-mechanical and electronic manufacturing services provider, saw its shares decline more than 9.5% after reporting its second quarter earnings after the closing bell Monday.
The company reported earnings per share of $1.50 on revenue of $566.63 million, beating analyst expectations of an earnings per share of $1.46 on revenue of $553.22 million.
However, the company's shares are down based on its growth outlook, with CFO Csaba Sverha saying in the Q2 earnings conference call that they are "expecting revenue from both optical and non-optical communications to be flat to up in the third quarter."
Fabrinet also expects slightly higher supply chain headwinds in the third quarter, which they estimate will be $30 million to $35 million.
Ahead of the open on Tuesday, Needham analyst Alex Henderson reiterated a buy rating on Fabrinet despite the supply chain constraints. Henderson told investors in a note that the company should be a beneficiary of a gradual but steady improvement in supply chain challenges over the next year. The analyst also kept a $130 price target on the shares.