Applied Optoelectronics (NASDAQ:AAOI) Releases Earnings Results, Beats Estimates By $0.01 EPS

Applied Optoelectronics (NASDAQ:AAOI) posted its quarterly earnings results on Thursday. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.01, FiscalAI reports. The business had revenue of $118.63 million during the quarter, compared to the consensus estimate of $119.77 million. Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. Applied Optoelectronics’s revenue was up 82.1% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.21) EPS. Applied Optoelectronics updated its Q4 2025 guidance to -0.130–0.040 EPS.

Applied Optoelectronics Stock Down 1.8%

AAOI stock traded down $0.53 on Friday, hitting $28.57. 10,088,897 shares of the company’s stock were exchanged, compared to its average volume of 4,655,761. The firm has a 50 day moving average price of $29.35 and a two-hundred day moving average price of $23.85. Applied Optoelectronics has a 12-month low of $9.71 and a 12-month high of $44.50. The stock has a market cap of $1.78 billion, a P/E ratio of -8.50 and a beta of 2.88. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.47 and a current ratio of 2.11.

Analyst Ratings Changes

A number of research analysts have weighed in on AAOI shares. Raymond James Financial raised their price objective on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the company an “outperform” rating in a research note on Friday, August 8th. Needham & Company LLC began coverage on shares of Applied Optoelectronics in a report on Friday, July 25th. They issued a “buy” rating and a $32.00 target price on the stock. Wall Street Zen cut shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Saturday, August 9th. B. Riley reiterated a “neutral” rating and set a $15.00 price target (up previously from $13.00) on shares of Applied Optoelectronics in a research note on Friday, August 8th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $27.20.

Insiders Place Their Bets

In other Applied Optoelectronics news, Director William H. Yeh purchased 4,000 shares of the company’s stock in a transaction dated Thursday, August 14th. The shares were acquired at an average price of $21.40 per share, for a total transaction of $85,600.00. Following the completion of the purchase, the director owned 253,819 shares of the company’s stock, valued at approximately $5,431,726.60. The trade was a 1.60% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Chih-Hsiang (Thompson) Lin acquired 3,250 shares of the firm’s stock in a transaction that occurred on Wednesday, August 13th. The stock was bought at an average cost of $22.65 per share, with a total value of $73,612.50. Following the completion of the transaction, the chief executive officer directly owned 1,655,415 shares in the company, valued at $37,495,149.75. The trade was a 0.20% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have acquired 44,100 shares of company stock valued at $1,000,878. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of large investors have recently bought and sold shares of AAOI. Headlands Technologies LLC acquired a new stake in Applied Optoelectronics during the 2nd quarter valued at approximately $57,000. Tower Research Capital LLC TRC grew its holdings in Applied Optoelectronics by 244.0% during the second quarter. Tower Research Capital LLC TRC now owns 6,832 shares of the semiconductor company’s stock worth $176,000 after acquiring an additional 4,846 shares during the period. Envestnet Asset Management Inc. acquired a new position in Applied Optoelectronics in the third quarter valued at approximately $235,000. Cetera Investment Advisers purchased a new position in shares of Applied Optoelectronics during the 2nd quarter valued at approximately $377,000. Finally, New York State Common Retirement Fund grew its position in Applied Optoelectronics by 36.0% during the second quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock valued at $437,000 after buying an additional 4,500 shares during the period. Hedge funds and other institutional investors own 61.72% of the company’s stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.