Company Overview - Applied Optoelectronics (AAOI) shares increased by 17.8% to close at $19.77, supported by high trading volume, contrasting with an 11.5% decline over the past four weeks [1] - The company is experiencing strong demand in the CATV market, growth in data center business, and increased production capacity for advanced optical transceivers, including 800G and 1.6 terabit products [1] Financial Performance - The upcoming quarterly report is expected to show a loss of $0.08 per share, reflecting a year-over-year improvement of 71.4% [2] - Revenue is projected to be $104.87 million, representing a significant increase of 142.4% compared to the same quarter last year [2] Market Trends - The consensus EPS estimate for Applied Optoelectronics has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Applied Optoelectronics operates within the Zacks Electronics - Semiconductors industry, where another company, Ichor Holdings (ICHR), has also maintained a Zacks Rank of 3 (Hold) [3][4] - Ichor Holdings' EPS estimate for the upcoming report is $0.19, showing a year-over-year change of 280% [4]
Applied Optoelectronics (AAOI) Moves 17.8% Higher: Will This Strength Last?