Applied Optoelectronics, Inc.

(NASDAQ Global Market)
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Slightly Bullish +25

Applied Optoelectronics (AAOI) to Post Earnings on Thursday

AI-generated analysis

πŸ“… AAOI will post Q2 2026 earnings on Thursday, August 6th, with analysts expecting $0.0151 EPS and $190.48M revenue.

πŸ“‰ The company previously missed Q1 estimates with a loss of $0.07 per share on revenue of $151.14 million.

πŸš€ Revenue grew 51.3% year-over-year in the last reported quarter despite the earnings miss.

πŸ’° CFO Stefan J. Murry sold 4,000 shares for $488,360 under a Rule 10b5-1 trading plan on July 10th.

πŸ“‰ Insider Shu-Hua (Joshua) Yeh sold 4,715 shares for $596,447 on August 4th under a similar plan.

🏦 Invesco Ltd. increased its stake by 5,208.9% in Q4, now holding 3.51 million shares worth $122.4M.

πŸ“ˆ Price T Rowe Associates grew its position by 5,321.6% in Q4, adding 2.19 million shares.

πŸ›οΈ Morgan Stanley raised holdings by 157.1% in Q4 to own 1.70 million shares valued at $59.3M.

πŸ“‰ Needham & Company lowered the price target from $260 to $220 while maintaining a 'Buy' rating.

βš–οΈ Wall Street consensus is a 'Hold' with a target price of $141.80, though Weiss Ratings maintains a 'Sell'.

Bullish Signals
  • Revenue grew 51.3% year-over-year in the last reported quarter, demonstrating strong top-line momentum.
  • Major institutional investors like Invesco Ltd. and Price T Rowe Associates significantly increased their stakes by over 5,000% in Q4.
  • Needham & Company maintains a 'Buy' rating despite lowering the price target, indicating confidence in long-term prospects.
  • Raymond James Financial reiterates an 'Outperform' rating on the stock.
  • The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.18 and high liquidity ratios.
Risk Factors
  • The company reported a loss of $0.07 per share in Q1, missing analyst estimates by $0.02.
  • Q1 revenue of $151.14 million fell short of the consensus estimate of $156.98 million.
  • Corporate insiders sold over $1 million worth of stock recently, reducing their direct ownership percentages.
  • Weiss Ratings reaffirmed a 'Sell (d-)' rating on the company.
  • Wall Street Zen previously downgraded the stock from 'Hold' to 'Sell' in April.
Full Analysis
Applied Optoelectronics (NASDAQ: AAOI) is scheduled to release its Q2 2026 earnings results after market close on Thursday, August 6th. Analysts project earnings per share of $0.0151 and revenue of $190.48 million, though the company has issued neutral guidance with an EPS range of -$0.03 to -$0.03. The upcoming earnings call is set for 4:30 PM ET. The semiconductor firm previously reported Q1 2026 results on May 7th, posting a loss of $0.07 per share against a consensus estimate of a $0.05 loss, representing a miss of $0.02. Revenue for the quarter reached $151.14 million, slightly below the estimated $156.98 million. Despite the loss, revenue grew 51.3% year-over-year compared to the prior period's earnings of -$0.02. Financial metrics indicate a market capitalization of $10.56 billion with a negative P/E ratio of -199.44 due to recent losses. The stock trades at $131.63, significantly above its 12-month low of $18.50 but below its high of $233.67. Balance sheet strength is highlighted by a debt-to-equity ratio of 0.18 and a current ratio of 3.83. Recent insider activity shows CFO Stefan J. Murry and insider Shu-Hua (Joshua) Yeh sold shares totaling over $1 million under pre-arranged Rule 10b5-1 plans, reducing their direct ownership slightly. Institutional investors have aggressively increased stakes in Q4, with Invesco Ltd. raising its position by over 5,200% and Price T Rowe Associates growing its stake by more than 5,300%.