Applied Optoelectronics (NASDAQ:AAOI) Releases Q3 2025 Earnings Guidance

Key Points

• Applied Optoelectronics has provided updated guidance for Q3 2025, expecting an EPS of -0.100 to -0.030, which is lower than the consensus estimate of -0.005, and revenue guidance of $115.0 million to $127.0 million compared to a consensus of $120.3 million.
• A number of analysts have adjusted their price targets for AAOI, with Northland Securities raising their target to $50.00, while Raymond James reduced theirs to $18.00; the consensus rating remains a "Moderate Buy."
• Insider selling occurred recently, with a top executive disposing of shares, contributing to a drop in stock price by 3.9%, reaching $22.33 during trading.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) updated its third quarter 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of -0.100--0.030 for the period, compared to the consensus estimate of -0.005. The company issued revenue guidance of $115.0 million-$127.0 million, compared to the consensus revenue estimate of $120.3 million.

Analysts Set New Price Targets

A number of brokerages recently commented on AAOI. Needham & Company LLC assumed coverage on Applied Optoelectronics in a report on Friday, July 25th. They set a "buy" rating and a $32.00 price target on the stock. Rosenblatt Securities boosted their target price on Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a research note on Thursday, June 26th. Raymond James Financial lowered their target price on Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. Northland Securities boosted their target price on Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research note on Friday, June 13th. Finally, Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research note on Saturday, June 21st. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, Applied Optoelectronics has a consensus rating of "Moderate Buy" and an average target price of $26.00.

Applied Optoelectronics Trading Down 3.9%

Shares of NASDAQ AAOI traded down $0.90 during midday trading on Thursday, reaching $22.33. The company had a trading volume of 6,327,050 shares, compared to its average volume of 4,284,955. The firm's fifty day moving average price is $23.24 and its 200-day moving average price is $20.62. The stock has a market cap of $1.24 billion, a PE ratio of -5.78 and a beta of 2.72. The company has a quick ratio of 1.34, a current ratio of 1.88 and a debt-to-equity ratio of 0.47. Applied Optoelectronics has a one year low of $7.04 and a one year high of $44.50.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The semiconductor company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.04) by $0.02. The business had revenue of $99.86 million during the quarter, compared to analyst estimates of $99.37 million. Applied Optoelectronics had a negative return on equity of 15.40% and a negative net margin of 55.98%. Applied Optoelectronics's quarterly revenue was up 145.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.31) EPS. On average, equities research analysts anticipate that Applied Optoelectronics will post -1.18 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider David C. Kuo sold 11,426 shares of the stock in a transaction that occurred on Wednesday, May 14th. The stock was sold at an average price of $19.10, for a total value of $218,236.60. Following the completion of the transaction, the insider owned 153,900 shares of the company's stock, valued at approximately $2,939,490. This represents a 6.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Stefan J. Murry sold 3,000 shares of the stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $27.46, for a total value of $82,380.00. Following the completion of the transaction, the chief financial officer directly owned 318,036 shares of the company's stock, valued at $8,733,268.56. This represents a 0.93% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 40,263 shares of company stock worth $787,050. 4.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Applied Optoelectronics stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 10.4% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 25,579 shares of the semiconductor company's stock after buying an additional 2,415 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.'s holdings in Applied Optoelectronics were worth $393,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 61.72% of the company's stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.

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