Applied Optoelectronics Inc (AAOI) Soars 15% on Solid Preliminary 1Q:17 Results


Applied Optoelectronics Inc (NASDAQ:AAOIׁ) shares are up nearly 15% in Thursday’s trading session, as the fiber optics firm’s first-quarter results appear likely to exceed guidance. Let’s take a look at the numbers:

First Quarter 2017 Preliminary Unaudited Financial Results

  • Revenue of approximately $96.2 million, above the prior outlook of $87.0 million to $91.0 million.
  • GAAP and non-GAAP gross margin in the range of 42.5% to 42.9%, above the prior non-GAAP outlook of 38% to 40%.
  • GAAP net income in the range from $18.0 million to $18.4 million and non-GAAP net income after tax in the range from $19.7 million to $20.2 million, above the prior non-GAAP outlook of $15.5 million to $17.2 million.
  • GAAP fully diluted earnings per share in the range of $0.91 to $0.94 and non-GAAP fully diluted earnings per share in the range of $1.00 to $1.02, using a weighted-average fully diluted share count of approximately 19.7 million shares. This is above the prior non-GAAP outlook of $0.80 to $0.88 per share, using approximately 19.5 million shares.

“We delivered another strong quarter with our top and bottom-line results expected to exceed our guidance,” said Dr. Thompson Lin, Applied Optoelectronics, Inc. founder, president and CEO. “Our results were driven by continued robust demand for our market-leading datacenter products and solid execution. We are pleased with our momentum and look forward to sharing the additional details of our first quarter performance on our conference call in May.”

On the ratings front, AAOI has been the subject of a number of recent research reports. In a report released today, Cowen analyst Paul Silverstein reiterated a Buy rating on AAOI, with a price target of $75, which represents a potential upside of 84% from where the stock is currently trading. Also today, Craig-Hallum’s Richard Shannon reiterated a Buy rating on the stock and has a price target of $70.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Paul Silverstein and Richard Shannon have a yearly average return of 34.8% and 15.3% respectively. Silverstein has a success rate of 69% and is ranked #169 out of 4556 analysts, while Shannon has a success rate of 41% and is ranked #787.

Overall, 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $62.50 which is 53.1% above where the stock closed yesterday.

Applied Optoelectronics, Inc. designs, develops and manufactures optical devices, packaged optical components, optical subsystems, laser transmitters, and fiber optic transceivers. It manufactures optical devices, including laser diodes, photodiodes, related modules and circuitry and equipment for applications in fiber-to-the-home, cable television, point to point communications and wireless. The company provides its products for three networking end-markets: internet data center, cable television and fiber-to-the-home. 

 

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