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Investing.com -- Applied Optoelectronics Inc. (NASDAQ:AAOI) shares tumbled 13.8% in after-hours trading Thursday after the optical networking products provider reported third-quarter earnings that missed analyst expectations and issued disappointing guidance for the current quarter.
The company reported an adjusted loss of -$0.09 per share for the third quarter, falling short of analyst estimates of -$0.01 per share. Revenue came in at $118.6 million, slightly below the consensus estimate of $118.69 million, though it represented an 81.9% increase YoY from $65.2 million in the same quarter last year.
Looking ahead, Applied Optoelectronics provided fourth-quarter guidance that disappointed investors. The company expects revenue between $125 million and $140 million, with the midpoint of $132.5 million falling below analyst expectations of $144.6 million. It also forecasts an adjusted loss between -$0.13 and -$0.04 per share, compared to analyst estimates of a profit of $0.03 per share.
"We successfully delivered revenue, gross margin, and non-GAAP EPS in line with our expectations," said Dr. Thompson Lin, AOI’s Founder, President and Chief Executive Officer. "We continued to see strong demand in our CATV business, driven by the continued ramp in orders for our 1.8 GHz amplifier products."
The company reported that its CATV (cable television) business achieved the highest quarterly revenue in company history, offsetting weaker datacenter revenue that fell short of expectations due to shipping and receiving delays at quarter end.
Gross margin improved to 31.0% on a non-GAAP basis, up from 25.0% in the year-ago quarter. The company continues to expand production capacity at both its U.S. and Taiwan facilities, with plans to reach a monthly production capacity of approximately 100,000 units of 800G transceivers by year-end.
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