Short-Term Investor Stock AAOI Gains 86% In 74 Trading Days

(RTTNews) - The stock, Applied Optoelectronics Inc. (AAOI), featured on our Short-Term Investor or STI on August 5, 2016, at an opening price of $14.66. On November 21, 2016, the stock touched a new high of $27.28, representing a gain of 86%.

Latest Q4 Preliminary Results

The company now expects fourth-quarter revenue in the range of $84.5 million - $84.8 million, GAAP earnings per share in the range of $0.70 - $0.75 and non-GAAP earnings per share in the range of $0.77 - $0.82.

Previously, the company expected revenue of $75.0 million - $79.0 million, and non-GAAP earnings of $0.46 - $0.51 per share.

On average, 6 analysts polled by Thomson Reuters expect earnings of $0.55 per share on revenue of $78.77 million for the quarter. Analysts' estimate typically exclude certain special items.

GAAP and non-GAAP gross margin is now projected in the range of 37.6% - 38.0%, above the prior non-GAAP outlook of 34.0% - 35.5%.

Applied Optoelectronics currently sees fourth-quarter GAAP net income, after tax, in the range from $13.0 million to $14.0 million and non-GAAP net income, after tax, in the range from $14.2 million to $15.2 million, above the prior non-GAAP outlook of $8.5 million - $9.5 million.

"We delivered a strong fourth quarter with top and bottom-line results expected to exceed our guidance," said Dr. Thompson Lin, Applied Optoelectronics, founder, president and CEO.

Excerpts from our August 5 STI article on AAOI:

Applied Optoelectronics issued upbeat guidance for the third quarter, and reported better-than-expected results for the second quarter.

Q3 Outlook

Third-quarter revenue is expected to be in the range of $56 million - $59 million, and non-GAAP earnings per share in the range of $0.16 - $0.21. Analysts expect earnings of $0.15 per share on revenues of $54.56 million for the period.

Q2 Results

The company's second-quarter GAAP net income was $0.6 million or $0.03 per share compared to $6.1 million or $0.38 per share in the second quarter 2015. Non-GAAP net income was $2.8 million or $0.16 per share compared $6.1 million or $0.38 per share in the prior year period.

Total revenue was $55.3 million, up 11% compared with $49.6 million in the second quarter 2015.

Analysts polled by Thomson Reuters expected earnings of $0.06 per share on revenue of $50.84 million for the quarter. Analysts' estimate typically exclude certain special items.