Applied Optoelectronics (NASDAQ:AAOI) Posts Earnings Results, Misses Expectations 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) released its quarterly earnings results on Thursday. The semiconductor company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08), Briefing.com reports. The firm had revenue of $102.95 million during the quarter, compared to analyst estimates of $104.96 million. Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. Applied Optoelectronics's quarterly revenue was up 137.9% on a year-over-year basis. During the same quarter last year, the firm earned ($0.28) earnings per share. Applied Optoelectronics updated its Q3 2025 guidance to -0.100--0.030 EPS.

Applied Optoelectronics Stock Performance

Shares of AAOI traded down $0.23 during trading hours on Wednesday, hitting $22.56. The company's stock had a trading volume of 2,143,997 shares, compared to its average volume of 4,392,625. The business has a 50 day simple moving average of $23.58 and a two-hundred day simple moving average of $20.34. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.11 and a quick ratio of 1.47. Applied Optoelectronics has a 52-week low of $7.72 and a 52-week high of $44.50. The company has a market cap of $1.41 billion, a price-to-earnings ratio of -6.77 and a beta of 2.72.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 3,000 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $27.46, for a total transaction of $82,380.00. Following the completion of the sale, the chief financial officer directly owned 318,036 shares in the company, valued at $8,733,268.56. The trade was a 0.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Applied Optoelectronics stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 10.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 25,579 shares of the semiconductor company's stock after buying an additional 2,415 shares during the quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.'s holdings in Applied Optoelectronics were worth $393,000 as of its most recent SEC filing. Institutional investors own 61.72% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on AAOI. Wolfe Research initiated coverage on shares of Applied Optoelectronics in a research note on Tuesday, July 8th. They issued a "peer perform" rating for the company. Raymond James Financial set a $25.00 target price on shares of Applied Optoelectronics and gave the company an "outperform" rating in a research note on Friday. Wall Street Zen downgraded shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a research note on Saturday. Northland Securities set a $30.00 target price on shares of Applied Optoelectronics in a research note on Friday. Finally, Needham & Company LLC began coverage on shares of Applied Optoelectronics in a research report on Friday, July 25th. They set a "buy" rating and a $32.00 price objective for the company. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $27.20.

Applied Optoelectronics Company Profile

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.