Applied Optoelectronics (NASDAQ:AAOI) Releases Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Applied Optoelectronics reported a loss of $0.16 per share for the quarter, missing analyst expectations by $0.08.
• Company revenue rose 137.9% year-over-year to $102.95 million, but still fell short of projected revenue of $104.96 million.
• Following the earnings report, shares of Applied Optoelectronics dropped 3.3%, trading at $21.59 during midday trading on Friday.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) issued its quarterly earnings data on Thursday. The semiconductor company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.08), Briefing.com reports. The business had revenue of $102.95 million for the quarter, compared to analysts' expectations of $104.96 million. Applied Optoelectronics had a negative return on equity of 15.40% and a negative net margin of 55.98%. The firm's revenue for the quarter was up 137.9% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.28) EPS. Applied Optoelectronics updated its Q3 2025 guidance to -0.100--0.030 EPS.

Applied Optoelectronics Trading Down 3.3%

Shares of Applied Optoelectronics stock traded down $0.74 during midday trading on Friday, reaching $21.59. 12,203,170 shares of the company's stock traded hands, compared to its average volume of 4,393,419. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.34 and a current ratio of 1.88. The company has a market cap of $1.20 billion, a PE ratio of -5.59 and a beta of 2.72. The stock has a 50 day moving average of $23.24 and a 200-day moving average of $20.62. Applied Optoelectronics has a 12 month low of $7.60 and a 12 month high of $44.50.

Insiders Place Their Bets

In related news, CFO Stefan J. Murry sold 3,000 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $27.46, for a total transaction of $82,380.00. Following the completion of the transaction, the chief financial officer owned 318,036 shares in the company, valued at $8,733,268.56. This represents a 0.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin bought 21,200 shares of the firm's stock in a transaction that occurred on Tuesday, May 13th. The shares were acquired at an average price of $18.22 per share, with a total value of $386,264.00. Following the acquisition, the chief executive officer owned 1,659,025 shares of the company's stock, valued at $30,227,435.50. This represents a 1.29% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold 40,263 shares of company stock worth $787,050 in the last ninety days. Insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Applied Optoelectronics

A hedge fund recently bought a new stake in Applied Optoelectronics stock. Cetera Investment Advisers acquired a new position in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 14,662 shares of the semiconductor company's stock, valued at approximately $377,000. 61.72% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Raymond James Financial set a $25.00 price objective on Applied Optoelectronics and gave the company an "outperform" rating in a research report on Friday. B. Riley boosted their price objective on Applied Optoelectronics from $13.00 to $15.00 and gave the company a "neutral" rating in a research report on Friday. Wolfe Research assumed coverage on Applied Optoelectronics in a research report on Tuesday, July 8th. They issued a "peer perform" rating for the company. Needham & Company LLC assumed coverage on Applied Optoelectronics in a research report on Friday, July 25th. They issued a "buy" rating and a $32.00 price objective for the company. Finally, Northland Securities boosted their price objective on Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research report on Friday, June 13th. Four analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $27.50.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.