These Analysts Cut Their Forecasts On Applied Optoelectronics After Q4 Results

Applied Optoelectronics, Inc. AAOI posted results for its fourth quarter on Thursday.

Applied Optoelectronics posted adjusted earnings of 4 cents per share, versus a year-ago loss of 19 cents per share. The company’s quarterly sales came in at $60.45 million versus market estimates of $65.19 million, according to data from Benzinga Pro.

Applied Optoelectronics said it sees first-quarter adjusted loss of 33 cents to 28 cents per share, versus market estimates for a loss of 1 cent per share. The company expects revenue of $41 million to $46 million, versus expectations of $66.180 million.

“We’re pleased by the continued progress we have made in improving our gross margin, which combined with expense management, allowed us to generate a small non-GAAP net income in the fourth quarter for the first time in many years,” said Dr. Thompson Lin, Applied Optoelectronics Inc. Founder, President and Chief Executive Officer. “While our fourth quarter revenue came in below our expectations, our gross margin outperformed our projections, and we generated non-GAAP EPS at the high end of our guidance range. Looking ahead, we expect to see some revenue decline in Q1 due to the Lunar New Year combined with some price reductions, with substantial improvement expected in Q2.”

Applied Optoelectronics shares gained 6% to close at $20.35 on Thursday.

These analysts made changes to their price targets on Applied Optoelectronics after the company reported quarterly results.

• B. Riley Securities cut the price target on Applied Optoelectronics from $22 to $16. B. Riley Securities analyst David Kang downgraded the stock from Buy to Neutral.
• Rosenblatt slashed the price target on Applied Optoelectronics from $23 to $20. Rosenblatt analyst Mike Genovese maintained a Buy rating.

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