On August 18, Fabrinet declined 6.51% overnight, trading at $557.5/share, with turnover of $13,900. Despite reporting Q4 results and guidance that exceeded expectations, the stock reversed from an initial post-earnings gain of over 8% to a sharp decline as investors locked in profits.

Fabrinet posted fiscal Q4 adjusted EPS of $4.10, beating the consensus estimate of $3.82 by 7.33% and representing a 54.72% year-over-year increase from $2.65. Revenue reached a record $1.316 billion, up 45% from $909.7 million a year earlier, surpassing the $1.275 billion estimate. Data center revenue crossed 50% of total sales for the first time. For fiscal Q1, management guided revenue of $1.38 billion to $1.43 billion and adjusted EPS of $4.10 to $4.25, both above consensus of $1.32 billion and $3.98 respectively.

Despite the double beat, the stock had already appreciated approximately 81.5% over the trailing twelve months and over 30% in August alone, carrying a P/E ratio of 51.35x. The stretched valuation and outsized prior gains triggered significant profit-taking pressure following the results.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)