Applied Optoelectronics (AAOI) Reports Q2 Loss, Misses Revenue Estimates

Core Viewpoint - Applied Optoelectronics reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, but an improvement from a loss of $0.28 per share a year ago [1][2] Financial Performance - The company posted revenues of $102.95 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.83%, but showing significant growth from $43.27 million in the same quarter last year [3] - The earnings surprise for the quarter was -100.00%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] Stock Performance - Applied Optoelectronics shares have declined approximately 37% since the beginning of the year, contrasting with a 7.9% gain in the S&P 500 [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $118.77 million, and -$0.05 on revenues of $472.84 million for the current fiscal year [8] - The trend of estimate revisions for the company was mixed ahead of the earnings release, which could change following the recent report [7] Industry Context - The Electronics - Semiconductors industry, to which Applied Optoelectronics belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [9]