Applied Optoelectronics Stock Jumps Ahead Of Q4 Results, Analysts Expect Topline Boost: Retail’s Bullish

Shares of Applied Optoelectronics Inc. (AAOI) rose by over 3% in after-market hours on Tuesday as the company gears up to post fourth-quarter results on Wednesday.

According to Stocktwits data, Applied Optoelectronics is expected to report a loss per share of $0.02 in Q4, flipping from earnings per share (EPS) of $0.04 during the same period last year.

Applied Optoelectronics is scheduled to post its Q4 results on Wednesday after markets close.

However, on a positive note, the fiber optic cable manufacturing company is expected to post revenue of $99.98 million during the quarter, up more than 65% from the same period last year.

During the quarter, the Texas-based company also raised $33.7 million in net proceeds via a registered direct offering of equity shares in December. The company said it would use these funds to meet its capital expenditure and other working capital needs.

Subsequently, analysts at Raymond James more than doubled their price target for the stock to $39 from $17 – this implies an upside of over 67% from Tuesday’s closing price. The brokerage has an ‘Outperform’ rating on the stock, according to The Fly.

FinChat data shows the average price target for the Applied Optoelectronics stock is $34.25, implying a nearly 47% upside from current levels.

Of the four brokerage recommendations, two have a ‘Buy’ rating, one has an ‘Outperform’ rating, and one recommends investors to ‘Sell’ the stock.

Applied Optoelectronics has missed earnings expectations in two of the last four quarters, but its revenue track record is worse. It missed estimates in three quarters during this period.

Retail sentiment on Stocktwits around the Applied Optoelectronics stock gained momentum to hover in the ‘bullish’ (66/100) territory. Message volume was elevated, too, showing increased interest among investors.

Applied Optoelectronics stock has lost nearly 37% of its value year-to-date (YTD), but its one-year performance is far better, with gains of over 58%.

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