Applied Optoelectronics, Inc. | $AAOI Stock | Shares Climb Up On Better Than Expected First Quarter Earnings and Revenue Numbers


Applied Optoelectronics, Inc. (NASDAQ: AAOI)



Applied Optoelectronics, Inc. (AAOI), a fiber-optic networking company yesterday reported their first quarter 2017 financial results. Applied Optoelectronics reported first quarter revenues of $96.2 million which beat analyst expectations of $89.8 million.

Applied Optoelectronics reported first quarter earnings of $1.00 to $1.02 per share which beat analyst expectations of $0.83 per share.


Applied Optoelectronics, Inc. CEO’s Comments

“We delivered another strong quarter with our top and bottom-line results expected to exceed our guidance,” said Dr. Thompson Lin, Applied Optoelectronics, Inc. founder, president and CEO. “Our results were driven by continued robust demand for our market-leading datacenter products and solid execution. We are pleased with our momentum and look forward to sharing the additional details of our first quarter performance on our conference call in May.”  Globe Newswire


AAOI Technical Analysis

Applied Optoelectronics

AAOI opened trading yesterday at $42.04 which was down from the previous day’s trading close of $42.38. Shares closed trading yesterday at $40.82 and spiked up after market to $48.91, equivalent to a 20% increase from the closing price.

Taking a look at the daily chart we can see that the last time AAOI traded above these levels we have to go back to April 4th, 2016 when it traded at $51.19. Taking a closer look at the daily chart we can see that before the spike up AAOI had been in an overall downward trend dating back to March 27th when it traded at $59.88. AAOI has a float of 16.85 million shares and traded 1.26 times the normal daily trading volume on Wednesday representing a high relative volume.

For trading purposes, I would like to see AAOI open trading on Thursday above $46.50 and if it does I would be looking to take a long position at the bell. My stop order would be $0.35 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Applied Optoelectronics, Inc., incorporated on March 25, 2013, is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television (CATV), fiber-to-the-home (FTTH) and telecommunications (telecom).

The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment. To Internet-based (Web 2.0) data center operators, the Company supplies optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. The Company supplies a range of products, including lasers, transmitters and transceivers, and turnkey equipment, to the CATV market.

The Company designs, manufactures and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process. The Company has manufacturing facilities in the United States, Taiwan and China.

The Company’s components often incorporate one or more of its optical laser chips inside a precision housing that provides mechanical protection, as well as standardized electrical contacts. Its optical components may also include optical filters or other optical elements by which optical signals are routed internally within the component.

The Company’s components may also include coolers, heaters and sensors that allow the temperature of the laser chip to be measured and controlled.”  Reuters




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