Applied Optoelectronics (AAOI) Reports Q1 Loss, Tops Revenue Estimates

Company Performance - Applied Optoelectronics reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of$ 0.04, and an improvement from a loss of $0.31 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of$ 99.86 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.13%, and showing significant growth from year-ago revenues of $40.67 million [2] - Over the last four quarters, the company has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Applied Optoelectronics shares have declined approximately 62.1% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is$ 0.07 on revenues of $114.9 million, and for the current fiscal year, it is$ 0.63 on revenues of $526.57 million [7] Industry Outlook - The Electronics - Semiconductors industry, to which Applied Optoelectronics belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact the stock's performance [5]