Applied Optoelectronics (AAOI) Reports Q4 Loss, Lags Revenue Estimates

Core Viewpoint - Applied Optoelectronics reported a quarterly loss of $0.01 per share, outperforming the Zacks Consensus Estimate of a loss of $0.12, indicating a significant earnings surprise of +91.89% [1][2] Financial Performance - The company posted revenues of $134.27 million for the quarter ended December 2025, slightly missing the Zacks Consensus Estimate by 0.05%, compared to revenues of $100.27 million a year ago [3] - Over the last four quarters, the company has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2][3] Stock Performance - Applied Optoelectronics shares have increased approximately 66.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.5% [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 -$0.06 on revenues of $145.37 million, and for the current fiscal year, it is $0.55 on revenues of $761.96 million [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 top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]