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Applied Optoelectronics (AAOI) Stock Falls on Earnings & Revenue Miss

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Applied Optoelectronics, Inc. (AAOI - Free Report) just released its latest quarterly financial results, posting non-GAAP earnings of $0.28 per share and revenues of $65.2 million.

Currently, AAOI is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 38% over the past month, including a 4.4% gain during regular trading hours today.

The stock is currently down 9.3% to $32.00 per share in after-hours trading shortly after its earnings report was released.

Applied Optoelectronics:

Missed earnings estimates. The company posted adjusted earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.33 per share. Investors should note that this consensus projection has trended downward over the duration of the quarter.

Missed revenue estimates. The company saw revenue figures of $65.2 million, missing our consensus estimate of $69.3 million. Total revenue was down 32% from the year-ago period.

GAAP net income was $2.1 million, down from $19.8 million in the prior-year quarter.

“We achieved revenue in the first quarter of $65.2 million, which was slightly below our guidance as we were unable to complete some orders in the quarter due to higher than expected employee turnover in our China factory as a result of the Lunar New Year holiday. These orders have been shipped in Q2. In the first quarter, we made good progress in diversifying our customer base with nine design wins, including five for our 100G products,” said CEO Dr. Thompson Lin.

Applied Opto expects second quarter 2018 revenue in range of $75 million to $81 million. Non-GAAP earnings are expected to fall between $0.39 and $0.52 per share. Prior to today’s announcement, our Zacks Consensus Estimates were calling for earnings of $0.43 per share and revenue $77.1 million in the quarter.

Here’s a graph that looks at Applied’s recent earnings performance:

Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise

Applied Optoelectronics, Inc. Price, Consensus and EPS Surprise | Applied Optoelectronics, Inc. Quote

Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company's products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure.

Check back later for our full analysis on AAOI’s earnings report!

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