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9500.0
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2013-01-17 00:00:00 UTC
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hhgregg Downgraded to Strong Sell - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/hhgregg-downgraded-to-strong-sell-analyst-blog-2013-01-17
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nan
|
nan
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Zacks Investment Research downgraded hhgregg Inc. ( HGG ) to a Zacks Rank #5 (Strong Sell) on Jan 16. Expectations of a disappointing third quarter fiscal 2013 and a consequent cut in the fiscal 2013 outlook, particularly due to continued decline in video category, are the reasons for the downgrade.
Why the Downgrade?
Appliance and electronics retailer, hhgregg has witnessed sharp downward estimate revisions after it announced preliminary results for the third quarter fiscal 2013 (ended December 31, 2012), which is scheduled to release on Jan 31. hhgregg has also revised its guidance for fiscal 2013 ending March 31, 2013.
For the third quarter, the company expects net sales to decline approximately 3.6% year over year to $799.6 million, with a decline of approximately 9.7% in comparable store sales. The poor comparable sales performance is expected to come from both the video and other categories, which are expected to decline 24.6% and 23.7%, respectively.
This decline is expected to overshadow the positive comparable sales in the appliance category as well as the computing and mobile phones category, which are expected to increase approximately 6.1% and 16.2%, respectively.
Further, lower-than-expected sales performance in the video category is expected to impact third quarter earnings. Excluding one-time store impairment charge, hhgregg projects a decline of approximately 21.3% in third quarter fiscal 2013 adjusted earnings to 52 cents.
Guidance
Following the weak preliminary third quarter results, the Indianapolis-based retailer revised its guidance for fiscal 2013. hhgregg has reduced its earnings forecast for fiscal 2013 to a range of 70 to 80 cents per share compared with the previous guidance of 90 cents to $1.05 per share.
The company has also lowered its comparable store sales guidance and expects it in the range of negative 8.5% to negative 7.5%, compared with the prior guidance range of negative 6.0% to negative 4.0%. Net sales are now expected to increase in the range of flat to 1.0%, much lower than the previous growth range of 3.0% to 6.0%. In addition, the company expects capital spending in the range of $35.0 million to $40.0 million, also lower than the previous guidance of $50.0 million to $55.0 million.
hhgregg has been experiencing disappointing results in the video category since last few quarters due to fundamental shifts in the video category and lower-than-expected margins across all screen sizes. In addition, declining industry demand for flat screen televisions severely impacted overall store traffic and video category sales.
Moreover, promotional activities or product innovation within the video category has further declined the gross profit margin rate for the video category and the total company gross margin rates.
Though hhgregg has also been testing new merchandise categories to improve overall mix in the video category, we continue to expect sluggish performance in the video category.
All the estimates declined for the third quarter over the past 7 days and the Zacks Consensus Estimate decreased 11.9% to 52 cents per share. For 2013, all the estimates were revised downward over the same timeframe, sinking the Zacks Consensus Estimate by 19.4% to 75 cents per share. For 2014, most of the estimates declined, which dropped the Zacks Consensus Estimate 9.3% to 88 cents per share over the last 7 days.
Other Stocks to Consider
Not all stocks are performing as poorly as hhgregg. Other computer & electronics retail industry stocks with favorable Zacks Rank include Conn's, Inc. ( CONN ) with a Zacks Rank #1 (Strong Buy) and Aaron's Inc ( AAN ) and Radioshack Corp ( RSH ) with a Zacks Rank #2 (Buy).
AARONS INC (AAN): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other computer & electronics retail industry stocks with favorable Zacks Rank include Conn's, Inc. ( CONN ) with a Zacks Rank #1 (Strong Buy) and Aaron's Inc ( AAN ) and Radioshack Corp ( RSH ) with a Zacks Rank #2 (Buy). AARONS INC (AAN): Free Stock Analysis Report CONNS INC (CONN): Free Stock Analysis Report HHGREGG INC (HGG): Free Stock Analysis Report To read this article on Zacks.com click here. Appliance and electronics retailer, hhgregg has witnessed sharp downward estimate revisions after it announced preliminary results for the third quarter fiscal 2013 (ended December 31, 2012), which is scheduled to release on Jan 31. hhgregg has also revised its guidance for fiscal 2013 ending March 31, 2013.
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Other computer & electronics retail industry stocks with favorable Zacks Rank include Conn's, Inc. ( CONN ) with a Zacks Rank #1 (Strong Buy) and Aaron's Inc ( AAN ) and Radioshack Corp ( RSH ) with a Zacks Rank #2 (Buy). AARONS INC (AAN): Free Stock Analysis Report CONNS INC (CONN): Free Stock Analysis Report HHGREGG INC (HGG): Free Stock Analysis Report To read this article on Zacks.com click here. For the third quarter, the company expects net sales to decline approximately 3.6% year over year to $799.6 million, with a decline of approximately 9.7% in comparable store sales.
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Other computer & electronics retail industry stocks with favorable Zacks Rank include Conn's, Inc. ( CONN ) with a Zacks Rank #1 (Strong Buy) and Aaron's Inc ( AAN ) and Radioshack Corp ( RSH ) with a Zacks Rank #2 (Buy). AARONS INC (AAN): Free Stock Analysis Report CONNS INC (CONN): Free Stock Analysis Report HHGREGG INC (HGG): Free Stock Analysis Report To read this article on Zacks.com click here. For the third quarter, the company expects net sales to decline approximately 3.6% year over year to $799.6 million, with a decline of approximately 9.7% in comparable store sales.
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Other computer & electronics retail industry stocks with favorable Zacks Rank include Conn's, Inc. ( CONN ) with a Zacks Rank #1 (Strong Buy) and Aaron's Inc ( AAN ) and Radioshack Corp ( RSH ) with a Zacks Rank #2 (Buy). AARONS INC (AAN): Free Stock Analysis Report CONNS INC (CONN): Free Stock Analysis Report HHGREGG INC (HGG): Free Stock Analysis Report To read this article on Zacks.com click here. Expectations of a disappointing third quarter fiscal 2013 and a consequent cut in the fiscal 2013 outlook, particularly due to continued decline in video category, are the reasons for the downgrade.
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dfc81921-3374-4e52-8d0c-725befd3a0ac
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9501.0
|
2013-01-03 00:00:00 UTC
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Rent-A-Center Reiterated at Neutral - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-reiterated-at-neutral-analyst-blog-2013-01-03
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Moreover, the company has been taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
In order to enhance consumers' shopping experience, the company has developed a new business model called RAC Acceptance. When the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
Despite sluggish recovery in the economy, Rent-A-Center is witnessing healthy demand for its product and services, as evident from its third-quarter 2012 results. Rent-A-Center posted third-quarter 2012 earnings of 67 cents a share that came in line with the Zacks Consensus Estimate, and rose 11.7% from the prior-year quarter, aided by top-line growth. Total revenue climbed 5% to $739.3 million on the back of higher RAC Acceptance segment revenue. However, total revenue fell short of the Zacks Consensus Estimate of $757 million.
The company projects top-line growth for 2012 between 7% and 8.5%, attributable to a low single-digit jump in Core U.S. segment and a contribution worth more than $325 million from the RAC Acceptance business. Management expects comparable-store sales growth of 2% for the fourth quarter and 2012. Management envisions 2012 earnings in the band of $3.05 - $3.15 per share.
However, we observe that higher cost of revenues kept the margins under pressure during the last reported quarter. Rent-A-Center's gross profit margin shrunk 160 basis points to 70.2%. Cost of rentals and fees rose 11.2%, whereas cost of merchandise sold grew 10%. Operating profit margin also contracted 10 basis points to 9.2%.
Going forward, the sluggish economic recovery and a fragile job market may make customers reluctant to enter new rental-purchase deals. Moreover, Rent-A-Center's business is seasonal in nature and typically generates stronger sales during the first quarter characterized by federal income tax refunds, which are used by the company's customers to exercise early purchase option on existing rental agreements.
As a result, we have maintained our Neutral recommendation on the stock with a target price of $36.00. Moreover, Rent-A-Center holds a Zacks #3 Rank that translates into a short-term 'Hold' rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc .
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Moreover, a new centralized purchasing system allows better management of rental merchandise.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Rent-A-Center posted third-quarter 2012 earnings of 67 cents a share that came in line with the Zacks Consensus Estimate, and rose 11.7% from the prior-year quarter, aided by top-line growth.
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc .
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679c2326-4aed-44b7-9f99-ef9dab9f6450
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9502.0
|
2012-12-21 00:00:00 UTC
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Rent-A-Center Expands in Alabama - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-expands-in-alabama-analyst-blog-2012-12-21
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, announced the opening of a new store in Northport, Alabama.
The company, through its latest store, will offer furnishings, electrical devices, electronics and computers. With the inclusion of this new store, Rent-A-Center will conduct operations through 58 locations in Alabama.
The move reflects the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Rent-A-Center plans to open approximately 35 domestic rent-to-own stores for 2012. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the company aims at 300 domestic RAC Acceptance kiosk additions.
Earlier this week, the company hiked its dividend by 31% to 21 cents (or 84 cents annually) from 16 cents a share (or 64 cents annually). The company announced that the increased dividend will be paid on January 24, 2013 to stakeholders of record as on January 3, 2013.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental purchase schemes that allow customers to own the merchandise upon the completion of the rental period. Due to continued tightening of the credit market, customers view rent-to-own as a more flexible and viable option compared to credit. However, the sluggish recovery and a fragile job market may make customers reluctant to enter new rental-purchase deals.
Currently, we maintain our long-term 'Neutral' recommendation on the stock. Moreover, Rent-A-Center retains a Zacks #3 Rank that translates into a short-term 'Hold' rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The company, through its latest store, will offer furnishings, electrical devices, electronics and computers.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. The move reflects the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc .
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc .
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1237c736-fbdc-445d-9403-f75ed8e5ee50
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9503.0
|
2012-12-18 00:00:00 UTC
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Rent-A-Center Ups Dividend - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-ups-dividend-analyst-blog-2012-12-18
|
nan
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nan
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Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators, recently announced a dividend hike, revealing its plan to utilize its free cash to boost stakeholders' return.
Plano, Texas-based company, Rent-A-Center, raised its quarterly dividend by 31% to 21 cents (or 84 cents annually) from 16 cents a share (or 64 cents annually). The company announced that the increased dividend will be paid on January 24, 2013 to stakeholders of record as on January 3, 2013. This is the 11th successive cash dividend.
However, the news did not provide much impetus to the stock, as the share price of Rent-A-Center rose by 1.8% or 62 cents to close at $35.78 on Tuesday. The dividend yield based on the new payout and the last closing market price is 2.3%.
In May 2011, Rent-A-Center, last hiked its dividend to 64 cents from 24 cents a share, reflecting an increase of 167%.
Rent-A-Center's commitment towards increasing shareholders' return reflects its free cash flow generating capability, sound liquidity position and defined future prospects. During the first-nine months of 2012, the company generated cash flow from operations of about $258.7 million.
Dividend increases not only enhance shareholder's return but also raise the market value of the stock. Through this strategy, the companies bolster investors' confidence on the stock, thereby persuading them to either buy or hold the scrip instead of selling them. Looking ahead, the company remains confident about its growth prospects, suggesting enhanced value for shareholders via dividend payout as well as share buybacks.
During the first-nine months of 2012, the company bought back 866,985 shares for approximately $30.1 million. Since the inception of the share buyback program, the company has repurchased 30,189,738 shares and employed approximately $745.6 million out of the $800 million authorized. The company's board of directors enhanced the share repurchase authorization by an additional $200 million to $1 billion.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental purchase schemes that allow customers to own the merchandise upon the completion of the rental period. Due to continued tightening of the credit market, customers view rent-to-own as a more flexible and viable option compared to credit. However, the sluggish recovery and a fragile job market may make customers reluctant to enter new rental-purchase deals.
Currently, we maintain our long-term Neutral recommendation on the stock. Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), retains a Zacks #3 Rank that translates into a short-term Hold rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), retains a Zacks #3 Rank that translates into a short-term Hold rating. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators, recently announced a dividend hike, revealing its plan to utilize its free cash to boost stakeholders' return.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), retains a Zacks #3 Rank that translates into a short-term Hold rating. Plano, Texas-based company, Rent-A-Center, raised its quarterly dividend by 31% to 21 cents (or 84 cents annually) from 16 cents a share (or 64 cents annually).
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), retains a Zacks #3 Rank that translates into a short-term Hold rating. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Plano, Texas-based company, Rent-A-Center, raised its quarterly dividend by 31% to 21 cents (or 84 cents annually) from 16 cents a share (or 64 cents annually).
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), retains a Zacks #3 Rank that translates into a short-term Hold rating. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators, recently announced a dividend hike, revealing its plan to utilize its free cash to boost stakeholders' return.
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e8c18576-e2ac-477a-9e98-7d4a8328c6f2
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9504.0
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2012-12-13 00:00:00 UTC
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Aaron's, Inc. Enters Oversold Territory - Tale of the Tape
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AAN
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https://www.nasdaq.com/articles/aarons-inc.-enters-oversold-territory-tale-of-the-tape-2012-12-13
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nan
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nan
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Aaron's, Inc. 's ( AAN ) share price has entered into oversold territory with a stochastic value of 16.622. The Zacks Consensus Estimate on the company's earnings for year ending December 2012 increased by 4 cents over the past two months to $2.07 per share. Aaron's, Inc. is a Zacks #1 Rank ("Strong Buy") company.
AARONS INC (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's, Inc. 's ( AAN ) share price has entered into oversold territory with a stochastic value of 16.622. AARONS INC (AAN): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate on the company's earnings for year ending December 2012 increased by 4 cents over the past two months to $2.07 per share.
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Aaron's, Inc. 's ( AAN ) share price has entered into oversold territory with a stochastic value of 16.622. AARONS INC (AAN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaron's, Inc. 's ( AAN ) share price has entered into oversold territory with a stochastic value of 16.622. AARONS INC (AAN): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate on the company's earnings for year ending December 2012 increased by 4 cents over the past two months to $2.07 per share.
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Aaron's, Inc. 's ( AAN ) share price has entered into oversold territory with a stochastic value of 16.622. AARONS INC (AAN): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate on the company's earnings for year ending December 2012 increased by 4 cents over the past two months to $2.07 per share.
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13cb3da5-d8ce-4a3e-99fc-a45aede3dc80
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9505.0
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2012-11-27 00:00:00 UTC
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Aaron's, Inc. (AAN) Ex-Dividend Date Scheduled for November 29, 2012
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AAN
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https://www.nasdaq.com/articles/aarons-inc-aan-ex-dividend-date-scheduled-november-29-2012-2012-11-27
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nan
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nan
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Aaron's, Inc. ( AAN ) has announced an ex-dividend date of November 29, 2012 and a cash dividend payment of $0.017 per share scheduled for January 04, 2013. Shareholders who purchased AAN stock prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 13.33% increase over the prior quarter. At the current stock price of $28.77, the dividend yield is .24%.
The previous trading day's last sale of AAN was $28.77, representing a -11.56% decrease from the 52 week high of $32.53 and a 19.23% increase over the 52 week low of $24.13.
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. ( PAYX ) and ADT Corporation ( ADT ). AAN's current earnings per share, an indicator of a company's profitability, is $2.17. Zacks Investment Research reports AAN's forecasted earnings growth in 2012 as 42.09%, compared to an industry average of 16.9%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
Interested in gaining exposure to AAN through an Exchange Traded Fund ( ETF )?
The following ETF(s) have AAN as a top-10 holding:
QuantShares U.S. Market Neutral Value Fund ETF ( CHEP )
QuantShares U.S. Market Neutral Size Fund ETF ( SIZ ).
The top-performing ETF of this group is SIZ with an decrease of -2.06% over the last 100 days.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaron's, Inc. ( AAN ) has announced an ex-dividend date of November 29, 2012 and a cash dividend payment of $0.017 per share scheduled for January 04, 2013. Shareholders who purchased AAN stock prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports AAN's forecasted earnings growth in 2012 as 42.09%, compared to an industry average of 16.9%.
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The following ETF(s) have AAN as a top-10 holding: QuantShares U.S. Market Neutral Value Fund ETF ( CHEP ) QuantShares U.S. Market Neutral Size Fund ETF ( SIZ ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Aaron's, Inc. ( AAN ) has announced an ex-dividend date of November 29, 2012 and a cash dividend payment of $0.017 per share scheduled for January 04, 2013.
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Aaron's, Inc. ( AAN ) has announced an ex-dividend date of November 29, 2012 and a cash dividend payment of $0.017 per share scheduled for January 04, 2013. Shareholders who purchased AAN stock prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have AAN as a top-10 holding: QuantShares U.S. Market Neutral Value Fund ETF ( CHEP ) QuantShares U.S. Market Neutral Size Fund ETF ( SIZ ).
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Aaron's, Inc. ( AAN ) has announced an ex-dividend date of November 29, 2012 and a cash dividend payment of $0.017 per share scheduled for January 04, 2013. Shareholders who purchased AAN stock prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have AAN as a top-10 holding: QuantShares U.S. Market Neutral Value Fund ETF ( CHEP ) QuantShares U.S. Market Neutral Size Fund ETF ( SIZ ).
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41022a17-2b88-4384-898d-333ae4ec27d7
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9506.0
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2012-11-19 00:00:00 UTC
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Rent-A-Centre Enhances Store Base - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-centre-enhances-store-base-analyst-blog-2012-11-19
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nan
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nan
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Rent-A-Center Inc. ( RCII ), the largest rent-to-own operator in the U.S, announced the opening of two new stores, one each in the states of Louisiana and Texas.
The company, through its latest stores, will offer furnishings, electrical devices, electronics and computers. With the inclusion of these new stores, Rent-A-Center now operates through 48 and 280 locations in Louisiana and Texas, respectively.
The residents of the regions will now have an additional option of purchasing goods with flexible payment options (freedom to pay weekly, biweekly or monthly). Moreover, when any consumer is denied credit financing for a particular product from the retailer, Rent-A-Center, under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
Management remains on track to open approximately 35 domestic rent-to-own stores for 2012. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the company aims at 300 domestic RAC Acceptance kiosk additions.
Rent-A-Center has an extensive network of more than 3,000 stores, facilitating it to effectively penetrate into its target markets and gain a competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Apart from store expansions, the company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
Currently, we have a long-term 'Neutral' recommendation on the stock. Moreover, the company has a Zacks #3 Rank, which translates into a short-term 'Hold' rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Rent-A-Center Inc. ( RCII ), the largest rent-to-own operator in the U.S, announced the opening of two new stores, one each in the states of Louisiana and Texas.
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Management remains on track to open approximately 35 domestic rent-to-own stores for 2012.
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a1af4dbb-6673-4781-a563-5f14c78bf7c2
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9507.0
|
2012-11-16 00:00:00 UTC
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Rent-A-Center Expands in California - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-expands-in-california-analyst-blog-2012-11-16
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to penetrate into its target markets, which facilitates the company to generate healthy sales and gain an advantage over its competitors.
Following its rationale, Rent-A-Center, which competes with Aaron's Inc . ( AAN ) and Advance America, recently announced the opening of its new store in Salinas, California.
The company, through its latest stores will offer luxury furnishings, electrical devices, electronics and computers to the residents of this region. With the inclusion of this new store, Rent-A-Center now operates through 153 locations in California.
The residents of the region will now have an additional option of purchasing goods with flexible payment options, giving them the freedom to pay weekly, biweekly or monthly. Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
Moreover, the company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
Management plans to open approximately 35 domestic rent-to-own stores for 2012. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the company aims at 300 domestic RAC Acceptance kiosk additions.
Currently, we have a long-term 'Neutral' recommendation on the stock. Moreover, the company has a Zacks #3 Rank, which translates into a short-term 'Hold' rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America, recently announced the opening of its new store in Salinas, California. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to penetrate into its target markets, which facilitates the company to generate healthy sales and gain an advantage over its competitors.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America, recently announced the opening of its new store in Salinas, California. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America, recently announced the opening of its new store in Salinas, California. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to penetrate into its target markets, which facilitates the company to generate healthy sales and gain an advantage over its competitors.
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( AAN ) and Advance America, recently announced the opening of its new store in Salinas, California. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc .
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c2d7133c-c0de-44fd-ac22-24b7767d7b5f
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9508.0
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2012-11-08 00:00:00 UTC
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Aaron's Ups Quarterly Dividend - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/aarons-ups-quarterly-dividend-analyst-blog-2012-11-08
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nan
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nan
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Leading rent-to-own operator, Aaron's Inc. ( AAN ), announced a 13.3% increase in its quarterly dividend rate. Consequently, the company will now be paying a quarterly dividend of 17 cents per share, up from 15 cents per share.
This brings the annual cash dividend of Aaron's to 68 cents per share, compared with 60 cents paid earlier. Considering the closing share price of $30.01 on November 7, 2012, the enhanced dividend translates into a dividend yield of 2.3%, considerably higher than the current yield of arch rival, Rent-A-Center Inc. ( RCII ), which stands at 1.9%.
The increased dividend will be paid on January 4, 2013 to shareholders of record as of December 3, 2012.
This announcement marks Aaron's seventh successive yearly dividend hike. Prior to this, the company had raised its quarterly dividend rate by 15.4% to 15 cents per share on November, 2011.
Aaron's policy of raising dividends annually points towards the company's strong growth trend as well as financial performance. Last month, Aaron's reported solid third-quarter 2012 adjusted earnings per share of 46 cents, surging 28% from 36 cents recorded in the year-ago quarter, driven by robust top-line performance.
The company's cash and cash equivalents at Aaron's as of September 30, 2012 were $155.6 million and total shareholders' equity was $1,092.4 million. During the first nine months of 2012, the company generated over $86.0 million in cash flow from operating activities.
Looking ahead, the company remains confident of its future growth prospects, suggesting enhanced value for shareholders via dividend payout as well as share buybacks. As of the end of the third quarter, Aaron's had nearly 4,044,655 shares remaining under its share repurchase authorization.
Currently, Aaron's holds a Zacks #1 Rank, implying a short-term Strong Buy rating on the stock. Moreover, the company maintains a long-term Outperform recommendation on the stock.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading rent-to-own operator, Aaron's Inc. ( AAN ), announced a 13.3% increase in its quarterly dividend rate. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Aaron's policy of raising dividends annually points towards the company's strong growth trend as well as financial performance.
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Leading rent-to-own operator, Aaron's Inc. ( AAN ), announced a 13.3% increase in its quarterly dividend rate. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. This brings the annual cash dividend of Aaron's to 68 cents per share, compared with 60 cents paid earlier.
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Leading rent-to-own operator, Aaron's Inc. ( AAN ), announced a 13.3% increase in its quarterly dividend rate. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, the company will now be paying a quarterly dividend of 17 cents per share, up from 15 cents per share.
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Leading rent-to-own operator, Aaron's Inc. ( AAN ), announced a 13.3% increase in its quarterly dividend rate. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. This brings the annual cash dividend of Aaron's to 68 cents per share, compared with 60 cents paid earlier.
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aa2d39aa-1aff-45e0-82b2-ae52ce616bad
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9509.0
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2012-11-01 00:00:00 UTC
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Zacks #1 Rank Additions for Thursday - Tale of the Tape
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AAN
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https://www.nasdaq.com/articles/zacks-1-rank-additions-for-thursday-tale-of-the-tape-2012-11-01
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nan
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nan
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Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today:
Aaron's, Inc. ( AAN )
AEterna Zentaris Inc. ( AEZS )
Agenus Inc. ( AGEN )
Antofagasta plc (ADR) ( ANFGY )
Apogee Enterprises, Inc. ( APOG )
View the entire Zacks #1 Rank List .
AARONS INC (AAN): Free Stock Analysis Report
AETERNA ZENTARS (AEZS): Free Stock Analysis Report
AGENUS INC (AGEN): Free Stock Analysis Report
(ANFGY): ETF Research Reports
APOGEE ENTRPRS (APOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: Aaron's, Inc. ( AAN ) AEterna Zentaris Inc. ( AEZS ) Agenus Inc. ( AGEN ) Antofagasta plc (ADR) ( ANFGY ) Apogee Enterprises, Inc. ( APOG ) View the entire Zacks #1 Rank List . AARONS INC (AAN): Free Stock Analysis Report AETERNA ZENTARS (AEZS): Free Stock Analysis Report AGENUS INC (AGEN): Free Stock Analysis Report (ANFGY): ETF Research Reports APOGEE ENTRPRS (APOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: Aaron's, Inc. ( AAN ) AEterna Zentaris Inc. ( AEZS ) Agenus Inc. ( AGEN ) Antofagasta plc (ADR) ( ANFGY ) Apogee Enterprises, Inc. ( APOG ) View the entire Zacks #1 Rank List . AARONS INC (AAN): Free Stock Analysis Report AETERNA ZENTARS (AEZS): Free Stock Analysis Report AGENUS INC (AGEN): Free Stock Analysis Report (ANFGY): ETF Research Reports APOGEE ENTRPRS (APOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: Aaron's, Inc. ( AAN ) AEterna Zentaris Inc. ( AEZS ) Agenus Inc. ( AGEN ) Antofagasta plc (ADR) ( ANFGY ) Apogee Enterprises, Inc. ( APOG ) View the entire Zacks #1 Rank List . AARONS INC (AAN): Free Stock Analysis Report AETERNA ZENTARS (AEZS): Free Stock Analysis Report AGENUS INC (AGEN): Free Stock Analysis Report (ANFGY): ETF Research Reports APOGEE ENTRPRS (APOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: Aaron's, Inc. ( AAN ) AEterna Zentaris Inc. ( AEZS ) Agenus Inc. ( AGEN ) Antofagasta plc (ADR) ( ANFGY ) Apogee Enterprises, Inc. ( APOG ) View the entire Zacks #1 Rank List . AARONS INC (AAN): Free Stock Analysis Report AETERNA ZENTARS (AEZS): Free Stock Analysis Report AGENUS INC (AGEN): Free Stock Analysis Report (ANFGY): ETF Research Reports APOGEE ENTRPRS (APOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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44b2bd88-68ec-43b0-82b2-5f5922eb5cd4
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9510.0
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2012-10-31 00:00:00 UTC
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New Indiana Store for Rent-A-Center - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/new-indiana-store-for-rent-a-center-analyst-blog-2012-10-31
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, announced the opening of a new store in Seymour, Indiana.
The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
The company, through its latest store, will offer furnishings, electrical devices, electronics and computers. With the inclusion of this new store, Rent-A-Center will conduct operations through 96 locations in Indiana.
The residents of the region will now have an additional option of purchasing goods with flexible payment options (freedom to pay weekly, biweekly or monthly). Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
During the recently concluded quarter, the company opened 11 new Core U.S. locations, acquired 2 stores and closed 3 stores (2 stores consolidated with existing locations and 1 location closed). The company also opened 100 RAC Acceptance stores and closed 29 stores (consolidated with existing locations).
Sixteen international locations were opened and 1 store was shuttered (consolidated with existing locations) during the quarter, bringing the count to 114 stores. ColorTyme, which is a wholly owned subsidiary of Rent-A-Center, added 5 new locations and closed 4 stores.
For 2012, management plans to open approximately 35 domestic rent-to-own stores. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the company aims at 300 domestic RAC Acceptance kiosk additions.
Currently, we have a long-term Neutral recommendation on the stock. Moreover, the company has a Zacks #3 Rank, which translates into a short-term Hold rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, announced the opening of a new store in Seymour, Indiana.
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AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. During the recently concluded quarter, the company opened 11 new Core U.S. locations, acquired 2 stores and closed 3 stores (2 stores consolidated with existing locations and 1 location closed).
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. During the recently concluded quarter, the company opened 11 new Core U.S. locations, acquired 2 stores and closed 3 stores (2 stores consolidated with existing locations and 1 location closed).
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( AAN ) and Advance America. AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. With the inclusion of this new store, Rent-A-Center will conduct operations through 96 locations in Indiana.
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1ce5d15f-8645-44f9-b850-d16af8df1215
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9511.0
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2012-10-29 00:00:00 UTC
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Earnings Scorecard: Rent-A-Centre - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/earnings-scorecard%3A-rent-a-centre-analyst-blog-2012-10-29
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nan
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nan
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Rent-A-Center Inc ( RCII ), one of the largest rent-to-own operators, recently delivered third-quarter 2012 earnings. The Wall Street analysts had more than a week to ponder over the earnings results and eventually made their estimates revision. In subsequent paragraphs, we will cover the results of the recent earnings announcement, estimate revisions by analysts as well as the Zacks Rank and long-term recommendation on the stock.
Earnings Report Review
Rent-A-Center's earnings of 67 cents a share came in line with the Zacks Consensus Estimate, and bolstered 11.7% from 60 cents earned in the prior-year quarter, aided by top-line growth.
Rent-A-Center's total revenue, which comprises store and franchise revenues, rose 5% to $739.3 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million. Comparable-store sales for the quarter rose 1.2%. The boost in the top line was attributable to higher revenue from the RAC Acceptance segment, partly mitigated by a decline in the Core U.S. segment.
Rent-A-Center projects 2012 top-line growth between 7% and 8.5%, attributable to a low single-digit jump in Core U.S. segment and more than $325 million contribution from the RAC Acceptance business. Management expects comparable-store sales growth of 2% for the fourth quarter and 2012.
Management envisions 2012 earnings in the band of $3.05 to $3.15 per share, including 30 cents cost related to its international expansion initiatives.
Management forecasted a 175 basis points contraction in gross profit margin for 2012. It also hinted at a 50 basis points reduction in operating profit margin for the year.
(Read our full coverage on this earnings report: Rent-A-Center Meets Expectations )
Agreement of Estimate Revisions
Clearly, a negative sentiment is evident among analysts following the company's third quarter earnings as 7 out of 10 estimates were lowered in the last 7 days for the fourth quarter of 2012, while 1 was raised. Looking out to fiscal 2012, 6 out of 9 estimates were lowered, while 2 moved in the opposite direction.
During the last 30 days, 7 out of 7 out of 10 estimates were lowered, while 1 was raised for the fourth quarter. For fiscal 2012, 6 out of 9 estimates were lowered, while 2 were raised.
Analysts remain concerned about the slowdown in the company's core business and rising inventory level. Moreover, higher cost of revenues is likely to remain a drag on the margins of the company as evident from the company's truncated margins outlook for fiscal 2012.
Magnitude of Estimate Revisions
Given the large number of downward estimate revisions, the Zacks Consensus Estimate decreased by 2 cents to 84 cents a share for the fourth quarter in the 7 days. Moreover, the story remains the same for fiscal 2012, as estimates waned 2 cents to $3.12.
The Zacks Consensus Estimate declined 3 cents in the last 30 days for the fourth quarter and fiscal 2012, respectively.
Our Recommendation
The company remains optimistic about its future growth prospects, with store openings in international markets and accelerated rollout of RAC Acceptance kiosks. Due to continued tightening of the credit market, customers see rent-to-own as a more viable option to credit. However, the sluggish recovery and a fragile job market may make customers reluctant to enter new rental-purchase deals. Moreover, margins remain under pressure due to higher cost of revenues.
Currently, we have a long-term 'Neutral' recommendation on the stock. Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term 'Hold' rating.
As a PhD from MIT, Len Zacks proved over 30 years ago that earnings estimate revisions are the most powerful force impacting stock prices. He turned this ground breaking discovery into two of the most celebrating stock rating systems in use today. The Zacks Rank for stock trading in a 1 to 3 month time horizon and the Zacks Recommendation for long-term investing (6+ months). These "Earnings Estimate Scorecard" articles help analyze the important aspects of estimate revisions for each stock after their quarterly earnings announcements. Learn more about earnings estimates and our proven stock ratings at : http://www.zacks.com/education/
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term 'Hold' rating. Learn more about earnings estimates and our proven stock ratings at : http://www.zacks.com/education/ AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. In subsequent paragraphs, we will cover the results of the recent earnings announcement, estimate revisions by analysts as well as the Zacks Rank and long-term recommendation on the stock.
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Learn more about earnings estimates and our proven stock ratings at : http://www.zacks.com/education/ AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term 'Hold' rating. Earnings Report Review Rent-A-Center's earnings of 67 cents a share came in line with the Zacks Consensus Estimate, and bolstered 11.7% from 60 cents earned in the prior-year quarter, aided by top-line growth.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term 'Hold' rating. Learn more about earnings estimates and our proven stock ratings at : http://www.zacks.com/education/ AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings Report Review Rent-A-Center's earnings of 67 cents a share came in line with the Zacks Consensus Estimate, and bolstered 11.7% from 60 cents earned in the prior-year quarter, aided by top-line growth.
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Learn more about earnings estimates and our proven stock ratings at : http://www.zacks.com/education/ AARONS INC (AAN): Free Stock Analysis Report RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term 'Hold' rating. In subsequent paragraphs, we will cover the results of the recent earnings announcement, estimate revisions by analysts as well as the Zacks Rank and long-term recommendation on the stock.
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2c8442b8-cb19-4357-a282-050582a0a624
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9512.0
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2012-10-23 00:00:00 UTC
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Rent-A-Center Meets Expectations - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-meets-expectations-analyst-blog-2012-10-23
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nan
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nan
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Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators, delivered third-quarter 2012 earnings of 67 cents a share that came in line with the Zacks Consensus Estimate, and increased 11.7% from 60 cents earned in the prior-year quarter, aided by top line growth.
Rent-A-Center's total revenue, which comprises store and franchise revenues, rose 5% to $739.3 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million. Comparable-store sales for the quarter rose 1.2%. The increase in the top line was attributable to higher revenue from the RAC Acceptance segment, partly mitigated by a decline in the Core U.S. segment.
The company's business model, called RAC Acceptance, is gaining traction. When a consumer is denied credit financing for a particular product from the retailer, Rent-A-Center acquires that product from the retailer by virtue of the RAC Acceptance program, and thereby offers it to the consumer under a rental-purchase transaction.
Revenue from the RAC Acceptance business surged 63.4% to $83.8 million from the prior-year quarter, whereas revenue from Core U.S. segment edged down 0.8% to $634.6 million. International segment revenue came in at $10.9 million substantially up from $4.7 million in the year-ago quarter.
Total store revenue rose 4.8% to $729.3 million. The growth was driven by 4.8% advancement in rental and fees revenue to $652.1 million and an 11.5% increase in merchandise sales to $58.9 million, partially offset by a 4.8% decline in installment sales to $15.6 million and 32.2% decrease in other revenue to $2.8 million. Total franchise revenue (ColorTyme segment) climbed 18% to $10 million during the quarter.
We observe that higher cost of revenues kept the gross margin under pressure. Although, Rent-A-Center's gross profit grew 2.7% to $519.3 million, gross margin shrunk 160 basis points to 70.2%. Cost of rentals and fees rose 11.2% to $158.8 million, whereas cost of merchandise sold grew 10% to $47.5 million.
Operating profit rose 4.2% to $68.1 million, whereas operating profit margin contracted 10 basis points to 9.2%. Adjusted EBITDA climbed 7.5% to $89 million, while adjusted EBITDA margin expanded 30 basis points to 12%.
Stores Update
During the quarter, the company opened 11 new Core U.S. locations, acquired 2 stores and closed 3 stores (2 stores consolidated with existing locations and 1 location closed) bringing the total store count to 2,983. The company also opened 100 RAC Acceptance stores and closed 29 stores (consolidated with existing locations), resulting in 882 stores.
Sixteen international locations were opened and 1 store was shuttered (consolidated with existing locations) during the quarter bringing the count to 114 stores. ColorTyme, which is a wholly owned subsidiary of Rent-A-Center, added 5 new locations and closed 4 stores, taking the total store count to 220.
For 2012, management plans to open approximately 35 domestic rent-to-own stores. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the company aims 300 domestic RAC Acceptance kiosk additions.
Other Financial Aspects
Rent-A-Center ended the quarter with cash and cash equivalents of $81.8 million, senior debt of $293.3 million, and shareholders' equity of $1,460.8 million. During the first-nine months of 2012, the company generated cash flow from operations of about $258.7 million. Management reiterated capital expenditures of approximately $105 million for 2012.
During the first-nine months of 2012, the company bought back 866,985 shares for approximately $30.1 million. Since the inception of the share buyback program, the company has repurchased 30,189,738 shares and has employed approximately $745.6 million out of the $800 million authorized. The company's Board of Directors enhanced the share repurchase authorization by an additional $200 million to $1 billion.
Strolling Through Guidance
Rent-A-Center projects 2012 top-line growth between 7% and 8.5%, attributable to a low single-digit jump in Core U.S. segment and more than $325 million contribution from the RAC Acceptance business. Management expects comparable-store sales growth of 2% for the fourth quarter and 2012.
Management envisions 2012 earnings in the band of $3.05 to $3.15 per share, including 30 cents cost related to its international expansion initiatives. The current Zacks Consensus Estimate for 2012 is $3.14 that lies near the upper-end of the guidance range.
Management also forecasted a 175 basis points contraction in gross profit margin for 2012. It also hinted a 50 basis points reduction in operating profit margin for the year.
Closing Comment
Currently, we have a long-term Outperform recommendation on the stock, given its sustained top and bottom lines growth for the past four quarters. However, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #4 Rank that translates into a short-term Sell rating as margins remained under pressure due to higher expenses.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental purchase schemes that allow customers to own the merchandise upon the completion of the rental period. Due to continued tightening of the credit market, customers see rent-to-own as a more flexible and viable option compared to credit. However, the sluggish recovery and a fragile job market may make customers reluctant to enter new rental-purchase deals.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #4 Rank that translates into a short-term Sell rating as margins remained under pressure due to higher expenses. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Strolling Through Guidance Rent-A-Center projects 2012 top-line growth between 7% and 8.5%, attributable to a low single-digit jump in Core U.S. segment and more than $325 million contribution from the RAC Acceptance business.
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However, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #4 Rank that translates into a short-term Sell rating as margins remained under pressure due to higher expenses. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators, delivered third-quarter 2012 earnings of 67 cents a share that came in line with the Zacks Consensus Estimate, and increased 11.7% from 60 cents earned in the prior-year quarter, aided by top line growth.
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However, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #4 Rank that translates into a short-term Sell rating as margins remained under pressure due to higher expenses. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center's total revenue, which comprises store and franchise revenues, rose 5% to $739.3 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million.
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However, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #4 Rank that translates into a short-term Sell rating as margins remained under pressure due to higher expenses. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center's total revenue, which comprises store and franchise revenues, rose 5% to $739.3 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million.
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3e6f6e21-14cb-4eac-b359-352458d226ff
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9513.0
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2012-10-19 00:00:00 UTC
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Earnings Preview: Rent-A-Center - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/earnings-preview%3A-rent-a-center-analyst-blog-2012-10-19
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nan
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nan
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Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators in the U.S., is slated to report its third-quarter 2012 financial results on October 22. The current Zacks Consensus Estimate for the quarter stands at 68 cents per share, indicating an increase of 12.5% from the prior-year quarter's earnings. Revenue, as per the Zacks Consensus Estimate, is $759 million.
Second-Quarter Synopsis
Rent-A-Center's second quarter earnings of 74 cents a share surpassed the Zacks Consensus Estimate of 71 cents, and increased 8.8% from 68 cents earned in the prior-year quarter, aided by growth in the top line.
Rent-A-Center's total revenue, which comprises store and franchise revenues, elevated 7.4% to $749.7 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million. Comparable-store sales for the quarter rose 2.8%. The boost in the top line was attributable to higher revenue from the RAC Acceptance segment.
Estimate Revisions Trend
Agreement
We do not see any major estimate revisions at this point. Among the 10 analysts covering the stock, none revised the estimate in the upward or downward direction for the upcoming quarter. Moreover, the story remains the same for fiscal 2012.
Analysts kept their estimates intact, in the absence of any major news having a direct or indirect impact on the estimates.
Magnitude
In the absence of estimate revisions, the Zacks Consensus Estimate remained stable at 68 cents and $3.15 for the third quarter and full-year 2012, respectively over the last 30 days.
Positive Surprise History
With respect to earnings surprises, Rent-A-Center has surpassed the Zacks Consensus Estimate over the last four quarters in the range of 3.5% to 4.2%. The average remained at 3.7%, indicating that the company has surpassed the Zacks Consensus Estimate by the same magnitude in the trailing four quarters.
Our Take
Currently, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), holds a Zacks #3 Rank that translates into a short-term Hold rating. However, considering the fundamentals, we have a long-term Outperform recommendation on the stock.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our Take Currently, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators in the U.S., is slated to report its third-quarter 2012 financial results on October 22.
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Our Take Currently, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The current Zacks Consensus Estimate for the quarter stands at 68 cents per share, indicating an increase of 12.5% from the prior-year quarter's earnings.
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Our Take Currently, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The current Zacks Consensus Estimate for the quarter stands at 68 cents per share, indicating an increase of 12.5% from the prior-year quarter's earnings.
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Our Take Currently, Rent-A-Center, which competes with Aaron's Inc. ( AAN ), holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Revenue, as per the Zacks Consensus Estimate, is $759 million.
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07a685f3-987b-4dc7-ba24-1367eaf64a1e
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9514.0
|
2012-10-11 00:00:00 UTC
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Rent-A-Center Adds Two Stores - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-adds-two-stores-analyst-blog-2012-10-11
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, announced the opening of two new stores, one each in the states of North Carolina and Georgia.
The company, through its latest stores, will offer furnishings, electrical devices, electronics and computers. With the inclusion of these new stores, Rent-A-Center now operates through 120 and 79 locations in North Carolina and Georgia, respectively.
The residents of the regions will now have an additional option of purchasing goods with flexible payment options (freedom to pay weekly, biweekly or monthly). Moreover, when the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center, under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
The RAC Acceptance program is gaining traction and remains a significant contributor to the company's top-line growth. The company expects to add 200 domestic RAC Acceptance kiosks in 2012.
Rent-A-Center has an extensive network of more than 3,000 stores, facilitating it to effectively penetrate into its target markets and gain a competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Apart from store expansions, the company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
Currently, we have a long-term 'Outperform' recommendation on the stock. However, the company has a Zacks #3 Rank, which translates into a short-term 'Hold' rating.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center has an extensive network of more than 3,000 stores, facilitating it to effectively penetrate into its target markets and gain a competitive advantage over its rivals, Aaron's Inc .
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Moreover, when the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center, under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Moreover, when the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center, under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Rent-A-Center Inc .
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02134957-276f-48db-b552-16f10b16c7ba
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9515.0
|
2012-10-01 00:00:00 UTC
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Rent-A-Center Expands in Texas - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-expands-in-texas-analyst-blog-2012-10-01
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nan
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nan
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To further strengthen its operational roots in the state of Texas, Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, opened an additional store in Austin. The company, through its latest store, will offer furnishings, electrical devices, electronics and computers. With the inclusion of this new store, Rent-A-Center will conduct operations through 277 locations in Texas.
The residents of the region will now have an additional option of purchasing goods with flexible payment options (freedom to pay weekly, biweekly or monthly). Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Moreover, the company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
Management anticipates earnings to be within $3.00 to $3.20 per share range in 2012. Revenue growth is expected to be roughly 7% to 10% for the year, attributable to a low single-digit jump in the Core U.S. and more than $300 million contribution from the RAC Acceptance business. Comparable-store sales are expected to be within 2.5% and 4.5%.
The current Zacks Consensus Estimate for the third quarter of 2012 is 68 cents, representing a year-over-year growth of 12.5%. Estimates for 2012 and 2013 are $3.15 and $3.55, reflecting annual growth of 8.14% and 12.95%, respectively.
Currently, we have a long-term 'Outperform' recommendation on the stock. However, the company has a Zacks #3 Rank, which translates into a short-term 'Hold' rating.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc .
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Moreover, a new centralized purchasing system allows better management of rental merchandise.
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( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc .
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. With the inclusion of this new store, Rent-A-Center will conduct operations through 277 locations in Texas.
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6d52bdd9-60cb-4e4c-a114-4204f9eb9a22
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9516.0
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2012-10-01 00:00:00 UTC
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Rent-A-Centre Expands in Texas - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-centre-expands-in-texas-analyst-blog-2012-10-01
|
nan
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nan
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To further strengthen its operational roots in the state of Texas, Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, opened an additional store in Austin. The company, through its latest store, will offer furnishings, electrical devices, electronics and computers. With the inclusion of this new store, Rent-A-Center will conduct operations through 277 locations in Texas.
The residents of the region will now have an additional option of purchasing goods with flexible payment options (freedom to pay weekly, biweekly or monthly). Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Moreover, the company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
Management anticipates earnings to be within $3.00 to $3.20 per share range in 2012. Revenue growth is expected to be roughly 7% to 10% for the year, attributable to a low single-digit jump in the Core U.S. and more than $300 million contribution from the RAC Acceptance business. Comparable-store sales are expected to be within 2.5% and 4.5%.
The current Zacks Consensus Estimate for the third quarter of 2012 is 68 cents, representing a year-over-year growth of 12.5%. Estimates for 2012 and 2013 are $3.15 and $3.55, reflecting annual growth of 8.14% and 12.95%, respectively.
Currently, we have a long-term 'Outperform' recommendation on the stock. However, the company has a Zacks #3 Rank, which translates into a short-term 'Hold' rating.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc .
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Moreover, a new centralized purchasing system allows better management of rental merchandise.
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( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The move was in line with the company's strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron's Inc .
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. With the inclusion of this new store, Rent-A-Center will conduct operations through 277 locations in Texas.
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c1c02d35-0564-47cc-87bc-1cbbaa23bfa9
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9517.0
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2012-09-14 00:00:00 UTC
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Rent-A-Center Expands in New York - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-expands-in-new-york-analyst-blog-2012-09-14
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to penetrate into its target markets, which facilitates the company to generate healthy sales and gain an advantage over its competitors.
Following its rationale, Rent-A-Center, which competes with Aaron's Inc . ( AAN ) and Advance America, recently announced the opening of its new store in East Harlem, New York.
The company, through its latest stores will offer luxury furnishings, electrical devices, electronics and computers to the residents of this region. With the inclusion of this new store, Rent-A-Center now operates through 176 locations in New York.
The residents of the region will now have an additional option of purchasing goods with flexible payment options, giving them the freedom to pay weekly, biweekly or monthly. Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
Apart from store expansion, the company is also taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
Going forward, the company remains optimistic about its future growth as it opens stores in international markets and accelerating the rollout of RAC Acceptance kiosks. Management maintained its fiscal 2012 earnings projection of $3.00 to $3.20 per share.
Moreover, the company reiterated its revenue growth forecast of 7% to 10% for the year, attributable to a low single-digit jump in the Core U.S. and more than $300 million contribution from the RAC Acceptance business. Management expects comparable-store sales between 2.5% and 4.5%.
Currently, we have a long-term 'Outperform' recommendation on the stock. Moreover, the company has a Zacks #2 Rank, which translates into a short-term 'Buy' rating.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America, recently announced the opening of its new store in East Harlem, New York. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to penetrate into its target markets, which facilitates the company to generate healthy sales and gain an advantage over its competitors.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America, recently announced the opening of its new store in East Harlem, New York. Moreover, a new centralized purchasing system allows better management of rental merchandise.
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( AAN ) and Advance America, recently announced the opening of its new store in East Harlem, New York. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to penetrate into its target markets, which facilitates the company to generate healthy sales and gain an advantage over its competitors.
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( AAN ) and Advance America, recently announced the opening of its new store in East Harlem, New York. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc .
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adc1e930-96bb-44df-8a96-05fa92f0556f
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9518.0
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2012-09-12 00:00:00 UTC
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Bullish on Rent-A-Center - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/bullish-on-rent-a-center-analyst-blog-2012-09-12
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nan
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nan
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With an extensive network of more than 3,000 stores, Rent-A-Center Inc. ( RCII ) is one of the largest rent-to-own operators in the U.S. The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over competitors such as Aaron's Inc. ( AAN ) and Advance America.
The company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
The company, in order to enhance consumers' shopping experience, has developed a new business model called RAC Acceptance. When the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center under its RAC Acceptance program, acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
Despite a sluggish recovery in the economy, Rent-A-Center is witnessing healthy demand for its product and services, as evident from its second-quarter 2012 results. The quarterly earnings of 74 cents a share outdid the Zacks Consensus Estimate of 71 cents, and augmented 8.8% from 68 cents earned in the prior-year quarter, aided by growth in the top line.
Rent-A-Center's total revenue, which comprises store and franchise revenues, grew 7.4% to $749.7 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million. Comparable-store sales for the quarter rose 2.8%. The increase in the top line was attributable to higher revenue from the RAC Acceptance segment.
Revenue from the RAC Acceptance business almost doubled to $77 million from the prior-year quarter, whereas revenue from the Core U.S. segment climbed 1.6%.
Rent-A-Center remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks. Management maintained its fiscal 2012 earnings projection of $3.00 to $3.20 per share.
The company also reiterated its revenue growth forecast of 7% to 10% for the year, attributable to a low single-digit jump in the Core U.S. and more than $300 million contribution from the RAC Acceptance business. Management expects comparable-store sales between 2.5% and 4.5%.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental purchase schemes that allow customers to own the merchandise on the completion of the rental period. Due to the continued tightening of the credit market, customers see rent-to-own as a more flexible and viable option compared to credit.
Currently, we have a long-term Outperform recommendation on the stock. However, Rent-A-Center's shares maintain a Zacks #3 Rank, which translates into a short-term Hold.
We observe that higher cost of revenues kept the gross margin under pressure that shrunk 220 basis points to 70.3% during the second quarter. Operating profit margin also contracted 70 basis points to 10.5%.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over competitors such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over competitors such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The quarterly earnings of 74 cents a share outdid the Zacks Consensus Estimate of 71 cents, and augmented 8.8% from 68 cents earned in the prior-year quarter, aided by growth in the top line.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over competitors such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. When the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center under its RAC Acceptance program, acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over competitors such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, a new centralized purchasing system allows better management of rental merchandise.
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bb8c6619-acbd-4873-bf08-951e5cf573bd
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9519.0
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2012-09-07 00:00:00 UTC
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Why this market has been rallying
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AAN
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https://www.nasdaq.com/articles/why-market-has-been-rallying-2012-09-07
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nan
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nan
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The market's reaction to the Fed's Jackson Hole meeting last week reminded me of my recent experience buying a car.
Armed with a rough idea of the size I needed and the price I was willing to pay, I test-drove several vehicles that were all pretty much the same. I found myself staring at them with glazed eyes while the salespeople make their pitches. After a few days of this indecision, one guy simply cut a bunch of money off the sticker price and I gave in.
The point is that I bought the car because I needed it. It was simply a question of what catalyst would get me to sign on the dotted line.
That's the case with Ben Bernanke's statement on so-called stimulus: "The Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."
Is this any surprise? Does anyone doubt that if the economy suddenly nosedived off the cliff tomorrow the Fed would take action? Is the sky blue?
Yet that is exactly what caused the market, and precious metals in particular, to rally. Given that there was nothing new in the statement, we must conclude that it wasn't the reason for the gains. The reason, in fact, was the same as why I bought the car: I needed one.
Investors need stocks and precious metals now. They're fully loaded on Treasuries and underexposed to equities. It's that simple.
Forget about the Fed and Europe. The simple fact is that stocks are underowned, and we're not going into recession. Period.
Then we have emerging strength in the small-cap Russell 2000 index, which has started outperforming the broader market in the last month. One final ingredient is that companies are now better managed and stronger financially than at any other moment in history.
Put all those pieces together, and here's what you have: The U.S. economy is not in recession, and stocks are underowned.
To that end, I'd like to close with some final trading ideas from researchLAB . As usual, these are starting points to give you ideas rather than recommendations.
Monolithic Power Systems (MPWR) : This small-cap chip maker has been beating estimates and growing at a double-digit pace. Piper Jaffray cut their rating yesterday, citing valuation, but those kind of downgrades often provide good buying opportunities. After all, it was rallying for a reason!
Rental companies : These stocks have been in a secular uptrend because banks have been slow to lend. In some respects, they devoted so much of their attention to mortgages in the last decade that they've forgotten how to do other kinds of business. These companies have been leasing items that were previously owned and financed--from machinery to furniture. Aaron's Rentals (AAN) looks especially interesting.
Deathcare : The ultimate secular pick. It's not hard to predict the wave of funerals that will occur in the next 20-30 years as the Baby Boomers age. Many of them will buy their graves and services years before under so-called preneed contracts. Now's the time for this trend to really get going with the oldest Boomers over 65. Service Corp. (SCI) has just broken out and looks pretty interesting.
Firearms : The improving jobs picture increases the chance of Obama getting reelected, and that will rekindle fears of gun owners who've been stockpiling weapons ahead of potential bans down the road. The charts on both of these companies, Smith & Wesson (SWHC) and Ruger (RGR), are amazing and appear to have more upside in the works.
(A version of this article appeared in optionMONSTER's What's the Trade? newsletter of Sept. 5.)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaron's Rentals (AAN) looks especially interesting. That's the case with Ben Bernanke's statement on so-called stimulus: "The Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability." Piper Jaffray cut their rating yesterday, citing valuation, but those kind of downgrades often provide good buying opportunities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Aaron's Rentals (AAN) looks especially interesting. Investors need stocks and precious metals now.
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Aaron's Rentals (AAN) looks especially interesting. The market's reaction to the Fed's Jackson Hole meeting last week reminded me of my recent experience buying a car. That's the case with Ben Bernanke's statement on so-called stimulus: "The Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."
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Aaron's Rentals (AAN) looks especially interesting. The simple fact is that stocks are underowned, and we're not going into recession. To that end, I'd like to close with some final trading ideas from researchLAB .
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3667905d-9915-4eee-be2c-f72c5db4c9b2
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9520.0
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2012-08-20 00:00:00 UTC
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Rent-A-Center Expands in Illinois - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-expands-in-illinois-analyst-blog-2012-08-20
|
nan
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nan
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Rent-A-Center Inc . ( RCII ), in an attempt to expand its operational roots in Illinois, opened an additional store in Downers Grove. The company, through its latest store, will offer furnishings, electrical devices, electronics and computers. With the inclusion of this new store, Rent-A-Center now operates through 106 locations in Illinois.
The residents of the region will now have an additional option of purchasing goods with flexible payment options, giving them the freedom to pay weekly, biweekly or monthly. Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
Earlier this week, the company announced the opening of its new store in Mableton, Georgia. Rent-A-Center leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its rivals, Aaron's Inc . ( AAN ) and Advance America.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental-purchase schemes that allow customers to own the merchandise on the completion of the rental period. Due to the continued tightening of the credit market, customers view rent-to-own as a more flexible and viable option compared to credit.
Moreover, the company's new business model, named RAC Acceptance, is gradually gaining traction. When a retailer denies a consumer credit financing for a particular product, Rent-A-Center, under its RAC Acceptance program, acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
Currently, we have a long-term 'Outperform' recommendation on the stock. The company alshas a Zacks #2 Rank, which translates into a short-term 'Buy' rating.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Due to the continued tightening of the credit market, customers view rent-to-own as a more flexible and viable option compared to credit.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Rent-A-Center leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its rivals, Aaron's Inc .
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America. Rent-A-Center Inc .
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3915c607-c337-46d0-aaff-6aeeec79e93a
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9521.0
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2012-08-15 00:00:00 UTC
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Georgia Gets New Rent-A-Center - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/georgia-gets-new-rent-a-center-analyst-blog-2012-08-15
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nan
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nan
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Rent-A-Center Inc . ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its competitors.
Following its rationale, Rent-A-Center, which competes with Aaron's Inc . ( AAN ) and Advance America, announced the opening of its new store in Mableton, Georgia.
The company, through its latest store, will offer furnishings, electrical devices, electronics and computers to the residents of this region. With the inclusion of this new store, Rent-A-Center now operates through 79 locations in Georgia.
The residents of the region will have the benefit of purchasing goods with flexible payment options, facilitating them to pay weekly, biweekly or monthly. Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.
Late last month, Rent-A-Center delivered better-than-expected second-quarter 2012 results. The quarterly earnings of 74 cents a share surpassed the Zacks Consensus Estimate of 71 cents, and increased 8.8% from 68 cents earned in the prior-year quarter, aided by growth on the top line.
The company's business model, called RAC Acceptance, is gaining traction. When a consumer is denied credit financing for a particular product from the retailer, Rent-A-Center acquires that product from the retailer by virtue of the RAC Acceptance program, and thereby offers it to the consumer under a rental-purchase transaction.
For fiscal 2012, the company continues to expect top-line growth between 7% and 10%, attributable to a low single-digit jump in Core U.S. and more than $300 million contribution from the RAC Acceptance business. Management expects comparable-store sales between 2.5% and 4.5%.
Management maintained its fiscal 2012 earnings projection of $3.00 to $3.20 per share, including a 25-30 cents cost related to its international expansion initiatives.
Currently, we have a long-term Outperform recommendation on the stock. However, the company has a Zacks #2 Rank, which translates into a short-term Buy rating.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ) and Advance America, announced the opening of its new store in Mableton, Georgia. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its competitors.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( AAN ) and Advance America, announced the opening of its new store in Mableton, Georgia. The quarterly earnings of 74 cents a share surpassed the Zacks Consensus Estimate of 71 cents, and increased 8.8% from 68 cents earned in the prior-year quarter, aided by growth on the top line.
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( AAN ) and Advance America, announced the opening of its new store in Mableton, Georgia. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. ( RCII ), the largest rent-to-own operator in the U.S, leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its competitors.
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( AAN ) and Advance America, announced the opening of its new store in Mableton, Georgia. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center Inc .
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9f584111-1f87-4365-875e-cc531b2ce7c8
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9522.0
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2012-07-24 00:00:00 UTC
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After-Hours Earnings Report for July 24, 2012 : AAPL, ACE, AFL, ALTR, ACC, AAN, AKR, AMSG, AEC, BHLB, BBSI, AFOP
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AAN
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https://www.nasdaq.com/articles/after-hours-earnings-report-july-24-2012-aapl-ace-afl-altr-acc-aan-akr-amsg-aec-bhlb-bbsi
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nan
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nan
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The following companies are expected to report earnings after hours on 07/24/2012. Visit our Earnings Calendar for a full list of expected earnings releases.
Apple Inc. ( AAPL ) is reporting for the quarter ending June 30, 2012. The computer company's consensus earnings per share forecast from the 37 analysts that follow the stock is $10.35. This value represents a 32.86% increase compared to the same quarter last year. AAPL missed the consensus earnings per share in the 3rd calendar quarter by -3.56%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AAPL is 12.91 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Ace Limited ( ACE ) is reporting for the quarter ending June 30, 2012. The insurance (property & casualty) company's consensus earnings per share forecast from the 20 analysts that follow the stock is $1.92. This value represents a -4.48% decrease compared to the same quarter last year. In the past year ACE has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 7.89%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACE is 9.02 vs. an industry ratio of 11.20.
Aflac Incorporated ( AFL ) is reporting for the quarter ending June 30, 2012. The insurance company's consensus earnings per share forecast from the 18 analysts that follow the stock is $1.61. This value represents a 3.21% increase compared to the same quarter last year. AFL missed the consensus earnings per share in the 4th calendar quarter by -1.99%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AFL is 6.47 vs. an industry ratio of 22.00.
Altera Corporation ( ALTR ) is reporting for the quarter ending June 30, 2012. The semiconductor company's consensus earnings per share forecast from the 20 analysts that follow the stock is $0.39. This value represents a -40.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ALTR is 18.98 vs. an industry ratio of 17.90, implying that they will have a higher earnings growth than their competitors in the same industry.
American Campus Communities Inc ( ACC ) is reporting for the quarter ending June 30, 2012. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.49. This value represents a 16.67% increase compared to the same quarter last year. In the past year ACC has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.85%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACC is 23.40 vs. an industry ratio of 18.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Aaron's, Inc. ( AAN ) is reporting for the quarter ending June 30, 2012. The retail company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.47. This value represents a 14.63% increase compared to the same quarter last year. AAN missed the consensus earnings per share in the 3rd calendar quarter by -5.26%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AAN is 14.20 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Acadia Realty Trust ( AKR ) is reporting for the quarter ending June 30, 2012. The reit company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.24. This value represents a 4.35% increase compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AKR is 22.74 vs. an industry ratio of 16.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Amsurg Corp. ( AMSG ) is reporting for the quarter ending June 30, 2012. The medical (outpatient/home care) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.50. This value represents a 21.95% increase compared to the same quarter last year. In the past year AMSG has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AMSG is 14.93 vs. an industry ratio of 12.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Associated Estates Realty Corporation ( AEC ) is reporting for the quarter ending June 30, 2012. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.33. This value represents a 22.22% increase compared to the same quarter last year. The last two quarters AEC had negative earnings surprises; the latest report they missed by -3.85%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AEC is 11.50 vs. an industry ratio of 18.80.
Berkshire Hills Bancorp, Inc. ( BHLB ) is reporting for the quarter ending June 30, 2012. The savings & loan company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.47. This value represents a 34.29% increase compared to the same quarter last year. In the past year BHLB has met analyst expectations twice and beat the expectations the other two quarters. The "days to cover" for this stock exceeds 20 days. Zacks Investment Research reports that the 2012 Price to Earnings ratio for BHLB is 11.20 vs. an industry ratio of 27.00.
Barrett Business Services, Inc. ( BBSI ) is reporting for the quarter ending June 30, 2012. The outsourcing company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.44. This value represents a 29.41% increase compared to the same quarter last year. In the past year BBSI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 5%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for BBSI is 16.10 vs. an industry ratio of 12.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Alliance Fiber Optic Products, Inc. ( AFOP ) is reporting for the quarter ending June 30, 2012. The fiber optics company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.15. This value represents a 7.14% increase compared to the same quarter last year. The last two quarters AFOP had negative earnings surprises; the latest report they missed by -16.67%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AFOP is 14.63 vs. an industry ratio of 8.10, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaron's, Inc. ( AAN ) is reporting for the quarter ending June 30, 2012. AAN missed the consensus earnings per share in the 3rd calendar quarter by -5.26%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AAN is 14.20 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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Aaron's, Inc. ( AAN ) is reporting for the quarter ending June 30, 2012. AAN missed the consensus earnings per share in the 3rd calendar quarter by -5.26%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AAN is 14.20 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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Aaron's, Inc. ( AAN ) is reporting for the quarter ending June 30, 2012. AAN missed the consensus earnings per share in the 3rd calendar quarter by -5.26%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AAN is 14.20 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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AAN missed the consensus earnings per share in the 3rd calendar quarter by -5.26%. Aaron's, Inc. ( AAN ) is reporting for the quarter ending June 30, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AAN is 14.20 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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26ac803a-9ae0-49cb-b35f-dfda37a46b7e
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9523.0
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2012-07-24 00:00:00 UTC
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Rent-A-Center Beats, Keeps Guidance - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-beats-keeps-guidance-analyst-blog-2012-07-24
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nan
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nan
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Rent-A-Center Inc. ( RCII ), one of the largest rent-to-own operators, recently delivered better-than-expected second-quarter 2012 results. The quarterly earnings of 74 cents a share outdid the Zacks Consensus Estimate of 71 cents, and increased 8.8% from 68 cents earned in the prior-year quarter, aided by growth in the top line.
Rent-A-Center's total revenue, which comprises store and franchise revenues, grew 7.4% to $749.7 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million. Comparable-store sales for the quarter rose 2.8%. The increase in the top line was attributable to higher revenue from the RAC Acceptance segment.
The company's business model, called RAC Acceptance, is gaining traction. When a consumer is denied credit financing for a particular product from the retailer, Rent-A-Center acquires that product from the retailer by virtue of the RAC Acceptance program, and thereby offers it to the consumer under a rental-purchase transaction.
Revenue from the RAC Acceptance business almost doubled to $77 million from the prior-year quarter, whereas revenue from Core U.S. segment climbed 1.6%.
Total store revenue rose 7.4% to $740.3 million. The growth was driven by 6.7% advancement in rental and fees revenue to $659 million, an 18.9% increase in merchandise sales to $60.6 million and a 9.5% jump in other revenue to $4.5 million, offset by a 2.4% decline in installment sales to $16.2 million. Total franchise revenue climbed 7% to $9.4 million during the quarter.
Higher Expenses Weighing Upon Margins
We observe that higher cost of revenues kept the gross margin under pressure. Although, Rent-A-Center's gross profit grew 4.1% to $527 million, gross margin shrunk 220 basis points to 70.3%. Cost of rentals and fees rose 14.7% to $159.8 million, whereas cost of merchandise sold soared 25.3% to $49.5 million.
Adjusted operating profit rose 1.2% to $79 million, whereas operating profit margin contracted 70 basis points to 10.5% due to an increase of 4.3% in salaries and other expenses, and a jump of 7.4% in general and administrative expenses.
Adjusted EBITDA climbed 3.6% to $98.8 million; however, adjusted EBITDA margin shriveled 50 basis points to 13.2%.
Stores Update
During the quarter, the company opened 8 new Core U.S. locations, consolidated 15 stores into existing locations and closed 3 stores bringing the total store count to 2,973. The company also opened 77 RAC Acceptance stores and consolidated 29 stores into existing locations, resulting in 811 stores.
Thirteen international locations were opened and 1 store was shuttered during the quarter bringing the count to 99 stores. ColorTyme, which is a wholly owned subsidiary of Rent-A-Center, added 2 new locations and closed 1 store, taking the total store count to 219.
For fiscal 2012, management plans to open approximately 50 domestic rent-to-own stores. Through the year, the company targets to open 60 rent-to-own locations in Mexico and 10 in Canada. Moreover, the company aims 200 domestic RAC Acceptance kiosk additions.
Financial Aspects
Rent-A-Center ended the quarter with cash and cash equivalents of $101.1 million, senior debt of $367.8 million, and shareholders' equity of $1,433.5 million. During the first-six months, the company generated cash flow from operations of about $161.1 million. Management projected capital expenditures of approximately $105 million for fiscal 2012.
During the first half of 2012, the company bought back 488,731 shares for approximately $16.5 million. Since the inception of the share buyback program, the company has repurchased 29,811,484 shares and has employed approximately $732 million out of the $800 million authorized.
Strolling Through Guidance
Rent-A-Center witnessed healthy demand for its products and services during the quarter, and reiterated its fiscal 2012 outlook. The company continues to expect top-line growth between 7% and 10%, attributable to a low single-digit jump in Core U.S. and more than $300 million contribution from the RAC Acceptance business. Management expects comparable-store sales between 2.5% and 4.5%.
Management maintained its fiscal 2012 earnings projection of $3.00 to $3.20 per share, including a 25-30 cents cost related to its international expansion initiatives. The current Zacks Consensus Estimate for fiscal 2012 is $3.13, which dovetails with management's guidance range.
Management also forecasted a 100 basis point contraction in gross profit margin for fiscal 2012. It also hinted a 50 basis point reduction in operating profit margin for the year.
Rent-A-Center Holds Zacks #2 Rank
Currently, we have a long-term Neutral recommendation on the stock. Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term Hold rating.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental purchase schemes that allow customers to own the merchandise upon the completion of the rental period. Due to continued tightening of the credit market, customers see rent-to-own as a more flexible and viable option compared to credit. However, the sluggish recovery and a fragile job market may make customers reluctant to enter new rental-purchase deals.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Strolling Through Guidance Rent-A-Center witnessed healthy demand for its products and services during the quarter, and reiterated its fiscal 2012 outlook.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The quarterly earnings of 74 cents a share outdid the Zacks Consensus Estimate of 71 cents, and increased 8.8% from 68 cents earned in the prior-year quarter, aided by growth in the top line.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Rent-A-Center's total revenue, which comprises store and franchise revenues, grew 7.4% to $749.7 million from the year-ago quarter but fell short of the Zacks Consensus Estimate of $757 million.
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Moreover, Rent-A-Center, which competes with Aaron's Inc. ( AAN ) and Advance America, holds a Zacks #3 Rank that translates into a short-term Hold rating. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Total store revenue rose 7.4% to $740.3 million.
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1cb028b6-62fb-49b1-be28-5ec7e64bec49
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9524.0
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2012-07-23 00:00:00 UTC
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Earnings Preview: Aaron's Inc. - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/earnings-preview%3A-aarons-inc.-analyst-blog-2012-07-23
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nan
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nan
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Aaron's Inc . ( AAN ), one of the leading rent-to-own operators in the US, is slated to report its second-quarter 2012 financial results on July 24. The current Zacks Consensus Estimate for the quarter stands at 47 cents per share, indicating an increase of 14.6% from the prior-year quarter's earnings. Revenue, as per the Zacks Consensus Estimate, is $522 million.
First-Quarter Synopsis
Aaron's first-quarter adjusted earnings of 64 cents a share outdid the Zacks Consensus Estimate of 60 cents, and increased 16% from 55 cents earned in the prior-year quarter, driven by growth registered in its top line.
The quarter's earnings also surpassed the higher end of management's guidance range of 58 cents to 62 cents a share. On a reported basis, including one-time items, earnings came in at 92 cents a share, up from 55 cents delivered in the year-ago quarter.
Aaron's top line jumped 10% to $586.9 million in the first quarter from $532.7 million in the prior-year quarter. Total revenue was also above the Zacks Consensus Estimate of $572.0 million. The company's comparable-store sales (comps) in the quarter rose 4.8% while stores open for over two years witnessed a 2.6% increase in comps.
Management Guidance
Aaron's expects to report total revenue of $525.0 million and earnings per share of 44 cents to 48 cents in the second quarter of 2012. For 2012, the company expects total revenue of $2.2 billion and therefore raised its adjusted earnings per share guidance to $1.96 to $2.08, up from its earlier projected guidance range of $1.88 to $2.04.
Estimate Revisions Trend
Agreement
Currently, we do not see any estimate revisions. Of the 10 analysts, none have revised their estimates in the last 7 or 30 days, either for second-quarter or for 2012.
Magnitude
The magnitude of estimate revisions for Aaron's depicts a neutral outlook for the upcoming second quarter and 2012. Over the last 7 and 30 days, estimates for the upcoming quarter and 2012 have remained unchanged at 47 cents and $2.03 per share, respectively.
Mixed Surprise History
With respect to earnings surprises, Aaron's has topped as well as missed the Zacks Consensus Estimate over the last four quarters in the range of negative 5.3% to positive 6.7%. The average surprise over the last four quarter remained at positive 0.7%.
Our Recommendation
Aaron's leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its competitors.
Despite a sluggish recovery in the economy, Aaron's witnessed healthy demand for its products and services. Further, the company is focusing on store expansion strategy to drive top line growth and intends to expand its store networks by 5% - 7% in 2012.
Aaron is a rent-to-own operator in the United States and has a low price provider strategy. The company is involved in the rental and specialty retailing of consumer electronics, residential and office furniture, household appliances, and accessories. The company competes directly with Rent-A-Center Inc. ( RCII ).
Currently, Aaron's holds a Zacks #3 Rank, implying a short-term Hold rating on the stock. Moreover, the company maintains a long-term Neutral recommendation on the stock.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( AAN ), one of the leading rent-to-own operators in the US, is slated to report its second-quarter 2012 financial results on July 24. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Our Recommendation Aaron's leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its competitors.
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( AAN ), one of the leading rent-to-own operators in the US, is slated to report its second-quarter 2012 financial results on July 24. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The current Zacks Consensus Estimate for the quarter stands at 47 cents per share, indicating an increase of 14.6% from the prior-year quarter's earnings.
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( AAN ), one of the leading rent-to-own operators in the US, is slated to report its second-quarter 2012 financial results on July 24. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The current Zacks Consensus Estimate for the quarter stands at 47 cents per share, indicating an increase of 14.6% from the prior-year quarter's earnings.
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( AAN ), one of the leading rent-to-own operators in the US, is slated to report its second-quarter 2012 financial results on July 24. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Aaron's Inc .
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6e96e3e0-0bed-4384-be6e-de3590e91436
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9525.0
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2012-07-17 00:00:00 UTC
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Screening for the Most Predictable Companies with Highest Dividend Growth
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AAN
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https://www.nasdaq.com/articles/screening-most-predictable-companies-highest-dividend-growth-2012-07-17
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nan
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nan
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GuruFocus' All-in-One Screener just got updated. It now has 120 filters to pinpoint the stocks you want. For instance, the screener can narrow down the universe of companies to predictable businesses with the highest rates of dividend growth. If under the Fundamental tab Predictability is set to 5, and under the Dividends tab Dividend Growth Rate is set to 15%, 15 companies that match these criteria appear below. Predictable companies are more likely to keep and grow their dividend, which makes them appealing for income investors who want to sustain a stream of stable income. As of today, the S&P 500 dividend yield is 2.01%, and has only been higher three times since 1997.
Aaron's Inc. ( AAN ) , a specialty realtor of appliances, furniture, electronics and a variety of other products, tops the list of stocks in this screen. The company has a rapid growth rate of 17.8% annually for revenue over the last 10 years, and 16.1% for EBITDA. Aaron's began paying a dividend in January 1987 and has consistently paid dividends for 24 years. In 2011, it raised the cash dividend rate by 15% to $0.054, its seventh straight annual increase. It also repurchased 5.1 million shares in 2011 and was authorized to acquire 5.3 million additional shares.
Aaron's is growing mainly from opening new sales and lease ownership stores, as well as from increased revenue from existing stores. The rate of store opening has been relatively even in recent years: The company added 82 company-operated and lease ownership stores and 49 franchise stores in 2011, and 67 company operated sales and lease ownership stores and 67 franchise stores in 2010.
Another stock the screen generated is multinational beverage company PepsiCo Inc. ( PEP ) . PepsiCo has a dividend yield of 3.1%, with growth of 12% annually, including a 6% increase in 2011. It authorized a further 6% increase for 2012, its 40 th consecutive year of dividend growth. Since 2007, the company has returned $30 billion to shareholders through share repurchases or dividends.
PepsiCo uses its operating cash flow to repurchase shares and pay dividends. This cash flow has increased from $6.8 billion in 2009 to $8.9 billion in 2011. It expects to generate $6 billion in 2012, after spending $1 billion in discretionary pension and retiree medical contributions in the first quarter, contributing to a $690 million loss.
Recently, PepsiCo has initiated a special focus on expanding China with a three-year commitment of $2.5 billion. It will introduce new Chinese-inspired products such as hot-and-sour fish soup potato chips and opened its sixth potato new potato-chip plant there in July, according to the Wall Street Journal.
Target ( TGT ) has paid a dividend every quarter since after its 1967 IPO. Target began paying a dividend in 1998. In 2011, it increased its dividend 23.1%, after increasing it 31% in 2010. Target pays dividends out of its cash flow from operations, which was $5.4 billion in 2011, up from $5.3 billion in 2010. In January, the company also authorized a $5 billion share repurchase plan which went into effect when its $10 billion repurchase plan authorized in 2007 ran out in March. In June, Target increased its dividend 20% to $0.36 per common share.
Target is also a steadily growing company with a 9.3% annual revenue growth rate over the last 10 years and 9.1% EBITDA growth rate over the same period. The company's sales have continued to be strong, in spite of competition from online retailers. In the first quarter, it increased sales 6.1% to $16.5 billion from the previous year, as well as earnings per share 11.5% to $1.11.
Target has planned to enter the Canadian market in 2013, which cost it $55 million in EBIT in the first quarter, but which would provide additional operating revenue toward sustaining its dividend.
Walmart ( WMT ) has a dividend yield of 2.2% and returned $11.3 billion to shareholders through dividends and repurchases in 2011. In March 2012, Walmart raised its dividend 9% for fiscal 2013 over its dividend in 2012. For 2013, it expects to pay $5.4 billion in dividends, an increase from $5 billion in 2012.
Walmart uses its operating cash flows to fund operations and global expansion activities, and uses all or part of the remainder to pay its dividend and share buy backs. It had net cash provided by operating activities of $24.3 billion in 2012, $23.6 billion in 2011 and $26.4 billion in 2011.
Walmart has strong and growing operations. In the first quarter both Walmart and Sam's delivered sales above guidance, and operating income from its international store increased 21.2%. Warren Buffett recently purchased a large portion of Walmart shares in the first quarter of 2012, before the stock jumped more than $10.
To find stocks matching your personal combination of 120 investing criteria, try GuruFocus' newly updated All-in-One Screener here .About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aaron's Inc. ( AAN ) , a specialty realtor of appliances, furniture, electronics and a variety of other products, tops the list of stocks in this screen. Target has planned to enter the Canadian market in 2013, which cost it $55 million in EBIT in the first quarter, but which would provide additional operating revenue toward sustaining its dividend. Warren Buffett recently purchased a large portion of Walmart shares in the first quarter of 2012, before the stock jumped more than $10.
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Aaron's Inc. ( AAN ) , a specialty realtor of appliances, furniture, electronics and a variety of other products, tops the list of stocks in this screen. If under the Fundamental tab Predictability is set to 5, and under the Dividends tab Dividend Growth Rate is set to 15%, 15 companies that match these criteria appear below. The rate of store opening has been relatively even in recent years: The company added 82 company-operated and lease ownership stores and 49 franchise stores in 2011, and 67 company operated sales and lease ownership stores and 67 franchise stores in 2010.
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Aaron's Inc. ( AAN ) , a specialty realtor of appliances, furniture, electronics and a variety of other products, tops the list of stocks in this screen. The rate of store opening has been relatively even in recent years: The company added 82 company-operated and lease ownership stores and 49 franchise stores in 2011, and 67 company operated sales and lease ownership stores and 67 franchise stores in 2010. Target pays dividends out of its cash flow from operations, which was $5.4 billion in 2011, up from $5.3 billion in 2010.
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Aaron's Inc. ( AAN ) , a specialty realtor of appliances, furniture, electronics and a variety of other products, tops the list of stocks in this screen. PepsiCo uses its operating cash flow to repurchase shares and pay dividends. Target pays dividends out of its cash flow from operations, which was $5.4 billion in 2011, up from $5.3 billion in 2010.
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06306b0d-e793-426b-9276-3018ea8c8021
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9526.0
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2012-06-27 00:00:00 UTC
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Rent-A-Center Kept at Neutral - Analyst Blog
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AAN
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https://www.nasdaq.com/articles/rent-a-center-kept-at-neutral-analyst-blog-2012-06-27
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nan
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With an extensive network of more than 3,000 stores, Rent-A-Center Inc. ( RCII ) is one of the largest rent-to-own operators in the U.S. The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over its competitors, such as Aaron's Inc. ( AAN ) and Advance America.
The company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Rent-A-Center recently implemented a centralized inventory management system, including automated merchandise replenishment. Moreover, a new centralized purchasing system allows better management of rental merchandise.
The company in order to enhance consumers' shopping experience has developed a new business model called RAC Acceptance. When the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
Despite sluggish recovery in the economy, Rent-A-Center is witnessing healthy demand for its products and services, as evident from its first-quarter 2012 results. The quarterly earnings of 87 cents a share outdid the Zacks Consensus Estimate of 84 cents, and increased 10.1% from 79 cents earned in the prior-year quarter, aided by growth in the top line.
Rent-A-Center's total revenue, which comprises store and franchise revenues, grew 12.5% to $835.3 million from the year-ago quarter, and handily beat the Zacks Consensus Estimate of $807 million. Comparable-store sales for the quarter rose 7.1%. The increase in the top line was attributable to higher revenue from the RAC Acceptance and Core U.S. segments.
Revenue from the RAC Acceptance business more than doubled to $87.7 million from the prior-year quarter, whereas revenue from Core U.S. climbed 5.6% to $727.8 million.
Rent-A-Center remains optimistic about its future growth as it opens stores in international markets and accelerates the rollout of RAC Acceptance kiosks. Management maintained its fiscal 2012 earnings projection of $3.00 to $3.20 per share.
The company also reiterated its revenue growth forecast of 7% to 10% for the year, attributable to a low single-digit jump in the Core U.S. and more than $300 million contribution from the RAC Acceptance business. Management expects comparable-store sales between 2.5% and 4.5%.
Rent-A-Center offers consumer electronics, appliances and furniture products under rental purchase schemes that allow customers to own the merchandise on the completion of the rental period. Due to the continued tightening of the credit market, customers see rent-to-own as a more flexible and viable option compared to credit. However, the sluggish recovery and a fragile job market may make customers reluctant to even enter new rental purchase deals.
Currently, we have a long-term Neutral recommendation on the stock. However, Rent-A-Center's shares maintain a Zacks #2 Rank that translates into a short-term Buy rating given its better-than-expected quarterly performance even amidst unstable economic recovery.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over its competitors, such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The company also reiterated its revenue growth forecast of 7% to 10% for the year, attributable to a low single-digit jump in the Core U.S. and more than $300 million contribution from the RAC Acceptance business.
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(AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over its competitors, such as Aaron's Inc. ( AAN ) and Advance America. The quarterly earnings of 87 cents a share outdid the Zacks Consensus Estimate of 84 cents, and increased 10.1% from 79 cents earned in the prior-year quarter, aided by growth in the top line.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over its competitors, such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. When the consumer is denied credit financing for a particular product from the retailer, Rent-A-Center under its RAC Acceptance program acquires that product from the retailer and offers it to the consumer under a rental-purchase transaction.
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The sheer geographic reach enables the company to effectively penetrate its target markets and gain a competitive advantage over its competitors, such as Aaron's Inc. ( AAN ) and Advance America. (AAN): ETF Research Reports RENT-A-CENTER (RCII): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, a new centralized purchasing system allows better management of rental merchandise.
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54720751-78b4-4e94-96f4-3499a0d2809b
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9527.0
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2023-12-13 00:00:00 UTC
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Applied Optoelectronics (AAOI) Price Target Increased by 25.37% to 21.42
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-price-target-increased-by-25.37-to-21.42
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nan
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 21.42 / share. This is an increase of 25.37% from the prior estimate of 17.08 dated November 26, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 20.20 to a high of 23.10 / share. The average price target represents a decrease of 1.47% from the latest reported closing price of 21.74 / share.
For more in-depth coverage of Applied Optoelectronics, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 138 funds or institutions reporting positions in Applied Optoelectronics. This is an increase of 40 owner(s) or 40.82% in the last quarter. Average portfolio weight of all funds dedicated to AAOI is 0.17%, a decrease of 6.17%. Total shares owned by institutions increased in the last three months by 33.44% to 19,379K shares.
The put/call ratio of AAOI is 0.51, indicating a bullish outlook.
What are Other Shareholders Doing?
Hood River Capital Management holds 1,520K shares representing 4.22% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Driehaus Capital Management holds 1,380K shares representing 3.83% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Portolan Capital Management holds 1,048K shares representing 2.91% ownership of the company. In it's prior filing, the firm reported owning 1,215K shares, representing a decrease of 15.98%. The firm increased its portfolio allocation in AAOI by 67.51% over the last quarter.
Royce & Associates holds 965K shares representing 2.68% ownership of the company. In it's prior filing, the firm reported owning 1,002K shares, representing a decrease of 3.90%. The firm increased its portfolio allocation in AAOI by 85.82% over the last quarter.
Renaissance Technologies holds 868K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 280K shares, representing an increase of 67.71%. The firm increased its portfolio allocation in AAOI by 574.56% over the last quarter.
Applied Optoelectronics Background Information
(This description is provided by the company.)
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 21.42 / share. Average portfolio weight of all funds dedicated to AAOI is 0.17%, a decrease of 6.17%. The put/call ratio of AAOI is 0.51, indicating a bullish outlook.
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In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%. The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 21.42 / share. Average portfolio weight of all funds dedicated to AAOI is 0.17%, a decrease of 6.17%.
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In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%. The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 21.42 / share. Average portfolio weight of all funds dedicated to AAOI is 0.17%, a decrease of 6.17%.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 21.42 / share. Average portfolio weight of all funds dedicated to AAOI is 0.17%, a decrease of 6.17%. The put/call ratio of AAOI is 0.51, indicating a bullish outlook.
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8f2e3ef3-aaef-4907-9a9b-17bdd8592d00
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9528.0
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2023-12-12 00:00:00 UTC
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Guru Fundamental Report for AAOI
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AAOI
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aaoi-1
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nan
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nan
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap growth stock in the Electronic Instr. & Controls industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
DEFINE THE UNIVERSE: PASS
TWELVE MINUS ONE MOMENTUM: PASS
RETURN CONSISTENCY NEUTRAL
SEASONALITY NEUTRAL
Detailed Analysis of APPLIED OPTOELECTRONICS INC
AAOI Guru Analysis
AAOI Fundamental Analysis
More Information on Wesley Gray
Wesley Gray Portfolio
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap growth stock in the Electronic Instr.
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Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System".
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66d85bb8-6c8f-4ded-8178-a5a3e9573140
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9529.0
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2023-12-12 00:00:00 UTC
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Constellation Energy and Winnebago Industries have been highlighted as Zacks Bull and Bear of the Day
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AAOI
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https://www.nasdaq.com/articles/constellation-energy-and-winnebago-industries-have-been-highlighted-as-zacks-bull-and-bear
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nan
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For Immediate Release
Chicago, IL – December 14, 2023 – Zacks Equity Research shares Constellation Energy Corp. CEG as the Bull of the Day and Winnebago Industries WGO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT.
Here is a synopsis of all five stocks:
Bull of the Day:
Constellation Energy Corp. is a Zacks Rank #1 (Strong Buy) stock, and a compelling standout in the Utilities sector because of its exposure to nuclear energy. Furthermore, analysts are forecasting very strong long-term EPS share growth, which combined with its historically discounted valuation makes it a top-tier investment consideration.
Company Summary
Constellation Energy Corporation is the country's leading producer of carbon-free energy, powering 20 million homes and making up 10% of the nation's renewable electricity. Through its diversified energy assets, including nuclear, hydro, wind, and solar generation facilities it is leading the industry in the transition to renewable utilities.
Constellation as set ambitious goals intending to produce 95% carbon-free electricity by 2030, 100% carbon-free electricity by 2040, a 100% reduction of operations-driven emissions by 2040 and providing 100 percent of business customers with customized data to help them reduce their own carbon footprints.
Earnings Estimates
Analysts have been steadily revising earnings estimates over the last five months, giving it a top Zacks rank, and powering a 36% YTD return. Current quarter earnings estimates have been revised higher by 28% and are expected to climb 1,500% YoY to $1.64 per share. FY23 earnings estimates have increased by 34% and are projected to climb to $7.44 per share.
Valuation
Even with the strong appreciation in the stock, CEG still boasts a very fair relative valuation. It is currently trading at a one year forward earnings multiple of 15.4x, below the industry average of 17.2x, and below its two-year median of 20.3x.
Additionally, with EPS forecast to grow an average 26.3% annually over the next 3-5 years, CEG also enjoys a bargain PEG ratio. Considering the growth estimates and earnings multiple its PEG ratio is 0.58x, indicating a value investing opportunity.
Bottom Line
For investors looking to add exposure to alternative energy stocks, Constellation Energy Corporation is a worthy consideration. Its ambitious and innovative vision, along with its reasonable valuation and strong growth estimates also make it a unique option in the utilities sector.
Bear of the Day:
Winnebago Industries, the country's leading producer of recreational vehicles, is bumping up against the obstacle of late business cycle economics, as consumers reduce discretionary spending and tighten budgets. In addition to a Zacks Rank #5 (Strong Sell) rating, it still has a historically elevated valuation, possibly not pricing in a further slowdown in consumer spending.
Because of these developments, I think investors should look for other opportunities.
Earnings Estimates
Analysts have unanimously lowered the expectation for Winnebago Industries earnings, giving it the lowest Zacks Ranks.
Current quarter earnings have declined by -12% and are forecast to fall -40% YoY to $1.25 per share. FY24 earnings have been revised lower by -5.6% and are projected to decrease by -14.3% YoY to $6.57 per share.
Technical Perspective
WGO stock has been trading in a wide range all year and was just denied by the upper level of resistance. I think it is likely that the lower level of support will be retested at some point in early 2024, making this stock one investors should avoid.
Valuation
Winnebago Industries is trading at a one year forward earnings multiple of 10.5x, which is below the industry average and above its five-year median of 9x. The company has also been increasing the share count over the last several years, and the shares outstanding jumped 11% in just the last year.
Bottom Line
Although Winnebago Industries is an industry leading company that likely has a positive long-term future, the near-term prospects for the stocks are not good. Investors should explore other industries as the market and economy digest the shifting environment.
Additional content:
3 Tech Stock Crushing the "Magnificent 7" in 2023
In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia and Tesla. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF on this theme. The ETF has surged more than 30% this year. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year.
But there are three tech stocks that have beaten even the best of Magnificent Seven, i.e., Nvidia.
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth, some tech companies shined. With the Fed expected to go slow on its rate hike spree in 2024 (or even cut rates in late 2024), overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
Stock to Watch
Below, we highlight those winning tech stocks that trumped even Magnificent Seven in 2023. Since these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), these winners have more room for growth going into 2024.
Applied Optoelectronics – Up 888.3% YTD
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The Zacks Rank #3 company belongs to a top-ranked Zacks sector (top 31%).
IonQ– Up 268.8% YTD
IonQ Inc. provides a quantum system through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ Inc., formerly known as dMY Technology Group Inc. III., is based in COLLEGE PARK, Md. The Zacks Rank #2 company hails from a top-ranked Zacks industry (top 36%) and sector (top 31%).
Vertiv– Up 271.7% YTD
Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The Zacks Rank #1 company belongs to a top-ranked Zacks industry (top 21%) and sector (top 31%). Two out of three analysts upped their earnings estimates for the upcoming quarter over the past one month.
Why Haven't You Looked at Zacks' Top Stocks?
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Constellation Energy Corporation (CEG) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, analysts are forecasting very strong long-term EPS share growth, which combined with its historically discounted valuation makes it a top-tier investment consideration.
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In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – December 14, 2023 – Zacks Equity Research shares Constellation Energy Corp. CEG as the Bull of the Day and Winnebago Industries WGO as the Bear of the Day.
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Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT. Here is a synopsis of all five stocks: Bull of the Day: Constellation Energy Corp. is a Zacks Rank #1 (Strong Buy) stock, and a compelling standout in the Utilities sector because of its exposure to nuclear energy.
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In addition, Zacks Equity Research provides analysis on Applied Optoelectronics AAOI, IonQ IONQ and Vertiv VRT. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. But there are three tech stocks that have beaten even the best of Magnificent Seven, i.e., Nvidia.
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e2b93c89-c4bc-4179-bf8b-b6b9e760e5a8
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9530.0
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2023-12-12 00:00:00 UTC
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3 Stock Winners That Are Up 500% or More in 2023
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AAOI
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https://www.nasdaq.com/articles/3-stock-winners-that-are-up-500-or-more-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
2023 proved to be a wild year, as many investors’ top-performing stocks quickly swirled down the drain amid higher interest rates and tightened economic conditions. But, against all odds, the market outlook improved rapidly in early fall before kicking off an early start to the Santa rally.
While it’s too early to say for sure, it seems like we’re ready to enter 2024 with a bang as stocks tick higher daily, though still below past highs. Better yet, some of the market’s biggest losers got shaken loose from most portfolios as companies entered a “sink or swim” phase, forced to adapt by focusing on financial fundamentals rather than growth at all costs.
Among the many top-performing stocks that made waves throughout 2023, these three stocks stand apart. They’ve returned 500% or more thus far, making them hot stocks to buy before 2024.
Carvana (CVNA)
Source: Ken Wolter / Shutterstock.com
Carvana (NYSE:CVNA), against all odds, jumped a whopping 753% since January. Shares in the online car shopping stock faced choppiness over the past few years as supply chain concerns drove used car pricing sky-high before markets normalized. At the same time, investors nervous about Carvana’s prospects saw limited profitability and questionable balance sheet stats as harbingers of doom.
That all changed in July when the company navigated a tricky debt situation and slashed a crippling leverage load. The clever financial engineering proved a boon to Carvana’s stock, and shares jumped more than 50% over a short period amid renewed investor enthusiasm.
Despite the top-performing stock’s record run, shares seem (surprisingly) undervalued today. Carvana trades at just 0.62x sales, though the company remains unprofitable. Still, the company’s balance sheet management bought Carvana much-needed breathing room and, if consumer sentiment keeps buyers away from purchasing cars new, Carvana stands to gain from a continued preference for used cars.
Applied Optoelectronics (AAOI)
Source: Shutterstock
Applied Optoelectronics (NASDAQ:AAOI) hit an impressive 880% return this year, but that isn’t the end of the story for this fiber-optic stock. Shares saw their bullish catalyst kickstart growth in August, as AAOI posted a surprisingly strong earnings beat. Some, but not all, of AAOI’s improved position came from a strategic partnership with Microsoft (NASDAQ:MSFT), cementing its position as a top tech supplier.
Despite its recent strength, AAOI’s share pricing might be close to its upper limit. The company’s free cash flow (FCF) is, frankly, abysmal. The company is deep in the red, posting a negative $18 million FCF in the most recent quarter. To that end, AAOI’s current short interest is pushing past 25%, indicating institutional bearishness for this top-performing stock.
If you were lucky to get in on the ground floor of AAOI’s record bull run, you might want to consider taking some gains off the table. If you’re considering an investment in AAOI today, though, I’d be patient and give shares some time to settle into a more practical valuation before committing your capital.
Soleno Therapeutics (SLNO)
Source: Gorodenkoff / Shutterstock.com
Soleno Therapeutics (NASDAQ:SLNO) is arguably 2023’s top-performing stock, as shares climbed more than 1,600% since January. Biotech stocks are always a risky and speculative play, and viability hinges on regulatory approval balanced with maintaining enough cash to keep research running.
Most of Soleno’s race to the top came from positive results in therapeutic trials designed to treat a rare genetic disorder as investors weighed FDA approval possibilities. There’s stil a long way to go before Soleno brings the product to market, though, introducing uncertainty and risk moving forward.
Still, the company’s cash balance is reassuring as staggered cash infusions tied to outcomes keep bearing fruit. An interesting note is that, as part of the genetic disorder treatment, patient outcome is tied to weight loss. While Soleno’s management says they aren’t planning to enter the broader weight loss treatment market that’s been so popular this year, FDA approval could trigger off-label opportunities to make Soleno a top contender against companies like Novo Nordisk (NYSE:NOVO). That’s enough to keep investors hot on Soleno and provide a unique value proposition for the top-performing stock.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post 3 Stock Winners That Are Up 500% or More in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) Source: Shutterstock Applied Optoelectronics (NASDAQ:AAOI) hit an impressive 880% return this year, but that isn’t the end of the story for this fiber-optic stock. Shares saw their bullish catalyst kickstart growth in August, as AAOI posted a surprisingly strong earnings beat. Some, but not all, of AAOI’s improved position came from a strategic partnership with Microsoft (NASDAQ:MSFT), cementing its position as a top tech supplier.
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Applied Optoelectronics (AAOI) Source: Shutterstock Applied Optoelectronics (NASDAQ:AAOI) hit an impressive 880% return this year, but that isn’t the end of the story for this fiber-optic stock. Shares saw their bullish catalyst kickstart growth in August, as AAOI posted a surprisingly strong earnings beat. Some, but not all, of AAOI’s improved position came from a strategic partnership with Microsoft (NASDAQ:MSFT), cementing its position as a top tech supplier.
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Applied Optoelectronics (AAOI) Source: Shutterstock Applied Optoelectronics (NASDAQ:AAOI) hit an impressive 880% return this year, but that isn’t the end of the story for this fiber-optic stock. Shares saw their bullish catalyst kickstart growth in August, as AAOI posted a surprisingly strong earnings beat. Some, but not all, of AAOI’s improved position came from a strategic partnership with Microsoft (NASDAQ:MSFT), cementing its position as a top tech supplier.
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Applied Optoelectronics (AAOI) Source: Shutterstock Applied Optoelectronics (NASDAQ:AAOI) hit an impressive 880% return this year, but that isn’t the end of the story for this fiber-optic stock. Shares saw their bullish catalyst kickstart growth in August, as AAOI posted a surprisingly strong earnings beat. Some, but not all, of AAOI’s improved position came from a strategic partnership with Microsoft (NASDAQ:MSFT), cementing its position as a top tech supplier.
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18f0a3d8-dc79-4e07-bcc4-fd6fc2dfc78e
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9531.0
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2023-12-12 00:00:00 UTC
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7 Stock Winners That Are Up 1,000% or More in 2023
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AAOI
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https://www.nasdaq.com/articles/7-stock-winners-that-are-up-1000-or-more-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As you may already suspect, there are not a lot of stocks up 1000% year-to-date, but several stocks trading on major exchanges are up 1000% from their lows set earlier in the calendar year. There are also a few fairly-liquid over-the-counter listed stocks that qualify for this category, whether by gaining tenfold since January, or by surging tenfold from an earlier low.
But no matter how they joined the “1000% Club,” the question now is whether any (or all) of these top performing stocks could knock it out of the park again in 2024. With this, let’s take a closer look, and find out.
Applied Optoelectronics (AAOI)
Source: John-Fs-Pic / Shutterstock.com
Up by 951.1% YTD, and by more than 1000% since its 2023 low, it’s an understatement to say that Applied Optoelectronics (NASDAQ:AAOI) has been one of the top performing stocks this year. Why have shares in this manufacturer of fiber optic networking products “crushed it” in terms of performance?
Chalk it up to surging expectations about an improvement in the company’s operating performance. As B. Riley’s Dave Kang argued in an August analyst upgrade of AAOI stock, several catalysts point to a rebound in sales and a material increase in Applied Optoelectronics’ margins.
That said, while AAOI has been a big winner for investors in 2023, that may not be the case for shares in 2024. Over the past few months, short interest with this stock has been rising. This may suggest that the “smart money” is betting big on disappointment down the road.
Arch Therapeutics (ARTH)
Source: Dmytro Zinkevych / Shutterstock.com
Trading at sub-$1 per share prices as recently as November, a recent run-up for bio-surgical products firm Arch Therapeutics (OTCMKTS:ARTH) has made it one of the stocks up 1000% or more this year. This recent hot run for this developer of advanced surgical wound care technology has likely been because of the release of a promising year-end operational update.
In the update, the company noted that it has “experienced a significant increase” in orders for its flagship wound care product. There is also speculation that OTC-listed ARTH stock is gearing up for an up-listing to the Nasdaq.
Still, given ARTH’s big jump in vague news and uplisting rumors, after climbing by more than tenfold in a matter of weeks, a significant reversal may be just around the corner. Consider digging more into this stock and its long-term potential, but stick to the sidelines for now.
Grayscale Bitcoin Cash Trust (BCHG)
Source: Shutterstock
Grayscale Bitcoin Cash Trust (OTCMKTS:BCHG) is one of many crypto-focused, closed-end funds managed by asset manager Grayscale Investments. This entity holds Bitcoin Cash (CCC:BCH-USD), not to be confused with Bitcoin (CCC:BTC-USD) itself.
YTD, BCHG stock is up by 955.6%, and has surged by more than 1000% from its 2023 low. However, this ncrease comes even as BCH-USD itself is up by only 136.1% during this same time frame. As a result, shares have gone from trading at a significant discount to a significant premium to the fund’s net asset value.
For savvy investors, there may be ways to exploit this valuation premium, as a Seeking Alpha commentator recently discussed. However, for most everyday investors, this premium is a clear warning sign to stay away from BCHG. Those bullish on BCH-USD can simply buy it directly through an exchange.
BlueFire Equipment (BLFR)
Source: Prostock-studio / Shutterstock.com
So far this year, BlueFire Equipment (OTCMKTS:BLFR) shares have increased in price to the tune of 1,618.75%. Yet while it’s definitely one of the stocks up by more than 1000% this year, whether it’s also currently one of the top stocks to buy is another question entirely.
There are many red flags with BLFR stock. For one, the company does not have a functioning website. Shares seem to have surged following a series of corporate developments. Given the spate of press releases touting these developments, it appears as though BlueFire is trying to gin up hype for the stock.
Perhaps, in order to raise capital through the sale of newly-issued shares. Even as BLFR has reduced its authorized common share count, the current authorization level (250 million shares, versus 34.1 million shares currently issued and outstanding) leaves plenty of room for dilutive secondary offerings.
Myomo (MYO)
Source: Shutterstock / PopTika
Similar to ARTH, Myomo (NYSEAMERICAN:MYO) is another of the stocks up 1000% this year that’s a medical technologies play. Myomo develops and sells wearable medical robotics products that help to improve the quality of life of those with neuromuscular disorders.
The latest big jump for MYO stock has followed the release of the company’s latest quarterly results and corporate updates. News of increased revenue, margins, and backlog has made the market considerably more bullish on MYO’s future prospects. Better yet, in contrast to some stocks listed above that arguably went up too far, too fast, Myomo could keep climbing in 2024.
With a potential customer base numbering in the millions, and Myomo already generating millions in revenue from selling thousands of units, achieving a level of growth needed to keep the needle moving appears to be well within the realm of possibility.
Safety Shot (SHOT)
Source: Cabeca de Marmore/ShutterStock.com
Safety Shot (NASDAQ:SHOT) may be the best-known among the stocks up 1000% this year. Among both investors and consumers, that is. As you may know, Safety Shot has been in the news lately regarding its eponymous detoxification beverage which purports to quickly reduce blood alcohol content.
But while there’s enormous potential with this product, for now said potential may be more than accounted for in the current valuation of SHOT stock. The stock currently has a market cap of $157.4 million, and only commercialized Safety Shot. The effectiveness of this product has yet to be evaluated by regulators.
Shares have pulled back to around $3.80 per share, after trading for as high as $7.50 per share. Company insiders have started to cash out as well. Even if you believe this product will be a blockbuster in terms of sales, take your time before buying.
Soleno Therapeutics (SLNO)
Source: Mongkolchon Akesin / Shutterstock.com
As I hinted above, Soleno Therapeutics (NASDAQ:SLNO) is the only stock trading on a major exchange that has gained by more than 1000% since the first trading day of 2023.
Considering it’s the most bona fide 1000% stock from this year, does that make it a top name to consider heading into 2024? Maybe, maybe not.
SLNO stock has gained by quadruple-digits this year, due to the September release of clinical trial data for this clinical-stage biotech firm’s flagship drug candidate, diazoxide choline. Said trial data for this treatment of Prader-Willi Syndrome symptoms is perceived to bode well for DCCR’s chances of making it to market.
Still, as InvestorPlace’s Thomas Yeung argued last month, high potential with SLNO comes with it high uncertainty and risk. It may be better to wait for major weakness before (possibly) making this stock a small, speculative buy.
On the date of publication, Thomas Niel held Bitcoin. He did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
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The post 7 Stock Winners That Are Up 1,000% or More in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As B. Riley’s Dave Kang argued in an August analyst upgrade of AAOI stock, several catalysts point to a rebound in sales and a material increase in Applied Optoelectronics’ margins. Applied Optoelectronics (AAOI) Source: John-Fs-Pic / Shutterstock.com Up by 951.1% YTD, and by more than 1000% since its 2023 low, it’s an understatement to say that Applied Optoelectronics (NASDAQ:AAOI) has been one of the top performing stocks this year. That said, while AAOI has been a big winner for investors in 2023, that may not be the case for shares in 2024.
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Applied Optoelectronics (AAOI) Source: John-Fs-Pic / Shutterstock.com Up by 951.1% YTD, and by more than 1000% since its 2023 low, it’s an understatement to say that Applied Optoelectronics (NASDAQ:AAOI) has been one of the top performing stocks this year. As B. Riley’s Dave Kang argued in an August analyst upgrade of AAOI stock, several catalysts point to a rebound in sales and a material increase in Applied Optoelectronics’ margins. That said, while AAOI has been a big winner for investors in 2023, that may not be the case for shares in 2024.
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Applied Optoelectronics (AAOI) Source: John-Fs-Pic / Shutterstock.com Up by 951.1% YTD, and by more than 1000% since its 2023 low, it’s an understatement to say that Applied Optoelectronics (NASDAQ:AAOI) has been one of the top performing stocks this year. As B. Riley’s Dave Kang argued in an August analyst upgrade of AAOI stock, several catalysts point to a rebound in sales and a material increase in Applied Optoelectronics’ margins. That said, while AAOI has been a big winner for investors in 2023, that may not be the case for shares in 2024.
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Applied Optoelectronics (AAOI) Source: John-Fs-Pic / Shutterstock.com Up by 951.1% YTD, and by more than 1000% since its 2023 low, it’s an understatement to say that Applied Optoelectronics (NASDAQ:AAOI) has been one of the top performing stocks this year. As B. Riley’s Dave Kang argued in an August analyst upgrade of AAOI stock, several catalysts point to a rebound in sales and a material increase in Applied Optoelectronics’ margins. That said, while AAOI has been a big winner for investors in 2023, that may not be the case for shares in 2024.
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ac75d94d-0f0b-4360-817e-7eddf0df5bd6
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9532.0
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2023-12-11 00:00:00 UTC
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3 Tech Stocks That Have Crushed "Magnificent Seven" in 2023
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AAOI
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https://www.nasdaq.com/articles/3-tech-stocks-that-have-crushed-magnificent-seven-in-2023
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nan
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nan
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In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple (AAPL), Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 30% this year. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year.
But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia.
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth, some tech companies shined. With the Fed expected to go slow on its rate hike spree in 2024 (or even cut rates in late 2024), overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
Stock to Watch
Below, we highlight those winning tech stocks that trumped even Magnificent Seven in 2023. Since these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), these winners have more room for growth going into 2024.
Applied Optoelectronics (AAOI) – Up 888.3% YTD
Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The Zacks Rank #3 company belongs to a top-ranked Zacks sector (top 31%).
IonQ IONQ– Up 268.8% YTD
IonQ Inc. provides a quantum system through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ Inc., formerly known as dMY Technology Group Inc. III., is based in COLLEGE PARK, Md. The Zacks Rank #2 company hails from a top-ranked Zacks industry (top 36%) and sector (top 31%).
Vertiv VRT – Up 271.7% YTD
Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The Zacks Rank #1 company belongs to a top-ranked Zacks industry (top 21%) and sector (top 31%). Two out of three analysts upped their earnings estimates for the upcoming quarter over the past one month.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Applied Optoelectronics (AAOI) – Up 888.3% YTD Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) – Up 888.3% YTD Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here. But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Applied Optoelectronics (AAOI) – Up 888.3% YTD Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers.
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But there are three tech stocks — Vertiv VRT, IonQ IONQ and Applied Optoelectronics AAOI — that have beaten even the best of Magnificent Seven, i.e., Nvidia. Applied Optoelectronics (AAOI) – Up 888.3% YTD Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4ad194c2-dfcc-4d2a-9915-b3c0b1471598
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9533.0
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2023-12-01 00:00:00 UTC
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Technology Sector Update for 12/01/2023: AAOI, PATH, ESTC, MRVL
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-12-01-2023%3A-aaoi-path-estc-mrvl
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nan
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nan
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Tech stocks were advancing late Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor Index adding 0.3%.
In corporate news, Applied Optoelectronics (AAOI) said Friday it has priced an upsized private offering of $80.2 million of 5.25% convertible senior notes due 2026. Its shares surged nearly 23%.
UiPath (PATH) shares jumped 26% as analysts increased their price targets on the stock following the release of the company's fiscal Q3 results late Thursday.
Elastic (ESTC) shares soared 37% after it reported fiscal Q2 non-GAAP diluted earnings of $0.37 per share, compared with a breakeven a year earlier.
Marvell Technology (MRVL) shares fell 5.5% after the company's downbeat outlook for fiscal Q4 led to price-target cuts by analysts.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In corporate news, Applied Optoelectronics (AAOI) said Friday it has priced an upsized private offering of $80.2 million of 5.25% convertible senior notes due 2026. Tech stocks were advancing late Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor Index adding 0.3%. UiPath (PATH) shares jumped 26% as analysts increased their price targets on the stock following the release of the company's fiscal Q3 results late Thursday.
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In corporate news, Applied Optoelectronics (AAOI) said Friday it has priced an upsized private offering of $80.2 million of 5.25% convertible senior notes due 2026. Tech stocks were advancing late Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor Index adding 0.3%. UiPath (PATH) shares jumped 26% as analysts increased their price targets on the stock following the release of the company's fiscal Q3 results late Thursday.
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In corporate news, Applied Optoelectronics (AAOI) said Friday it has priced an upsized private offering of $80.2 million of 5.25% convertible senior notes due 2026. UiPath (PATH) shares jumped 26% as analysts increased their price targets on the stock following the release of the company's fiscal Q3 results late Thursday. Elastic (ESTC) shares soared 37% after it reported fiscal Q2 non-GAAP diluted earnings of $0.37 per share, compared with a breakeven a year earlier.
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In corporate news, Applied Optoelectronics (AAOI) said Friday it has priced an upsized private offering of $80.2 million of 5.25% convertible senior notes due 2026. Tech stocks were advancing late Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor Index adding 0.3%. Its shares surged nearly 23%.
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bd52b6aa-4148-48ea-8395-b3936259c9dd
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9534.0
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2023-11-29 00:00:00 UTC
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Wednesday Sector Leaders: Computers, Semiconductors
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AAOI
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https://www.nasdaq.com/articles/wednesday-sector-leaders%3A-computers-semiconductors
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nan
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nan
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In trading on Wednesday, computers shares were relative leaders, up on the day by about 3.7%. Leading the group were shares of NetApp, up about 16.8% and shares of Hewlett Packard Enterprise up about 8.6% on the day.
Also showing relative strength are semiconductors shares, up on the day by about 2.8% as a group, led by Applied Optoelectronics, trading up by about 10.3% and indie Semiconductor, trading up by about 7.5% on Wednesday.
VIDEO: Wednesday Sector Leaders: Computers, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, computers shares were relative leaders, up on the day by about 3.7%. Also showing relative strength are semiconductors shares, up on the day by about 2.8% as a group, led by Applied Optoelectronics, trading up by about 10.3% and indie Semiconductor, trading up by about 7.5% on Wednesday. VIDEO: Wednesday Sector Leaders: Computers, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, computers shares were relative leaders, up on the day by about 3.7%. Also showing relative strength are semiconductors shares, up on the day by about 2.8% as a group, led by Applied Optoelectronics, trading up by about 10.3% and indie Semiconductor, trading up by about 7.5% on Wednesday. VIDEO: Wednesday Sector Leaders: Computers, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, computers shares were relative leaders, up on the day by about 3.7%. Also showing relative strength are semiconductors shares, up on the day by about 2.8% as a group, led by Applied Optoelectronics, trading up by about 10.3% and indie Semiconductor, trading up by about 7.5% on Wednesday. VIDEO: Wednesday Sector Leaders: Computers, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, computers shares were relative leaders, up on the day by about 3.7%. Leading the group were shares of NetApp, up about 16.8% and shares of Hewlett Packard Enterprise up about 8.6% on the day. Also showing relative strength are semiconductors shares, up on the day by about 2.8% as a group, led by Applied Optoelectronics, trading up by about 10.3% and indie Semiconductor, trading up by about 7.5% on Wednesday.
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070cc898-97f3-47cf-8cd2-7087854bafd3
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9535.0
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2023-11-27 00:00:00 UTC
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Applied Optoelectronics (AAOI) Price Target Increased by 6.35% to 17.09
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-price-target-increased-by-6.35-to-17.09
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nan
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nan
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 17.08 / share. This is an increase of 6.35% from the prior estimate of 16.06 dated October 31, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 13.64 to a high of 21.00 / share. The average price target represents an increase of 31.02% from the latest reported closing price of 13.04 / share.
For more in-depth coverage of Applied Optoelectronics, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 131 funds or institutions reporting positions in Applied Optoelectronics. This is an increase of 32 owner(s) or 32.32% in the last quarter. Average portfolio weight of all funds dedicated to AAOI is 0.14%, a decrease of 1.93%. Total shares owned by institutions increased in the last three months by 25.08% to 18,101K shares.
The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
What are Other Shareholders Doing?
Hood River Capital Management holds 1,520K shares representing 4.28% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Driehaus Capital Management holds 1,380K shares representing 3.88% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Portolan Capital Management holds 1,048K shares representing 2.95% ownership of the company. In it's prior filing, the firm reported owning 1,215K shares, representing a decrease of 15.98%. The firm increased its portfolio allocation in AAOI by 67.51% over the last quarter.
Royce & Associates holds 965K shares representing 2.71% ownership of the company. In it's prior filing, the firm reported owning 1,002K shares, representing a decrease of 3.90%. The firm increased its portfolio allocation in AAOI by 85.82% over the last quarter.
Renaissance Technologies holds 868K shares representing 2.44% ownership of the company. In it's prior filing, the firm reported owning 280K shares, representing an increase of 67.71%. The firm increased its portfolio allocation in AAOI by 574.56% over the last quarter.
Applied Optoelectronics Background Information
(This description is provided by the company.)
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 17.08 / share. Average portfolio weight of all funds dedicated to AAOI is 0.14%, a decrease of 1.93%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%. The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 17.08 / share. Average portfolio weight of all funds dedicated to AAOI is 0.14%, a decrease of 1.93%.
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In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%. The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 17.08 / share. Average portfolio weight of all funds dedicated to AAOI is 0.14%, a decrease of 1.93%.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 17.08 / share. Average portfolio weight of all funds dedicated to AAOI is 0.14%, a decrease of 1.93%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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adb3dc00-3481-4798-943b-7506e441f42e
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9536.0
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2023-11-16 00:00:00 UTC
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Guru Fundamental Report for AAOI
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AAOI
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aaoi-0
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nan
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nan
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating using this strategy is 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
DEFINE THE UNIVERSE: PASS
TWELVE MINUS ONE MOMENTUM: PASS
RETURN CONSISTENCY NEUTRAL
SEASONALITY NEUTRAL
Detailed Analysis of APPLIED OPTOELECTRONICS INC
AAOI Guru Analysis
AAOI Fundamental Analysis
More Information on Wesley Gray
Wesley Gray Portfolio
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap value stock in the Electronic Instr.
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Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System".
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0de2effb-aa1d-46ad-8243-137246f0fc1e
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9537.0
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2023-09-29 00:00:00 UTC
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Are Computer and Technology Stocks Lagging Applied Optoelectronics (AAOI) This Year?
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AAOI
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https://www.nasdaq.com/articles/are-computer-and-technology-stocks-lagging-applied-optoelectronics-aaoi-this-year-1
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Applied Optoelectronics is one of 633 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AAOI has returned 483.1% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 33.4% on a year-to-date basis. As we can see, Applied Optoelectronics is performing better than its sector in the calendar year.
Badger Meter (BMI) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 42.6%.
For Badger Meter, the consensus EPS estimate for the current year has increased 5.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Applied Optoelectronics is a member of the Electronics - Semiconductors industry, which includes 41 individual companies and currently sits at #191 in the Zacks Industry Rank. This group has gained an average of 39.6% so far this year, so AAOI is performing better in this area.
On the other hand, Badger Meter belongs to the Instruments - Control industry. This 7-stock industry is currently ranked #7. The industry has moved +20.5% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Optoelectronics and Badger Meter as they could maintain their solid performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 483.1% so far this year.
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Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole?
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher.
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Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Based on the most recent data, AAOI has returned 483.1% so far this year.
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490650ac-7788-433f-ad50-4beb55f4c22a
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9538.0
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2023-09-25 00:00:00 UTC
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5 Tech Stocks That More Than Doubled in the First Nine Months
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AAOI
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https://www.nasdaq.com/articles/5-tech-stocks-that-more-than-doubled-in-the-first-nine-months
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nan
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nan
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Technology has turned out to be the most profitable sector so far this year, driven by the artificial intelligence (AI) boom, easing inflation and a surge in “magnificent seven.” Bets that the Fed will soon end its tightening policy have also driven the sector higher. However, the hopes faded in recent months with the expectation of higher rates for longer than expected, pushing the sector down.
The decline seems short-lived per Wedbush analyst Dan Ives who believes that the technology sector is poised to weather a prolonged phase of increased interest rates. Ives eyes the "biggest tech revolution in 30 years" on the horizon, with the new tech bull market kicking off.
Amid this, we have highlighted five stocks that have been leading the sector higher so far this year. Most interestingly, these stocks have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the month ahead as well. These are Applied Optoelectronics, Inc. AAOI, Arlo Technologies, Inc. ARLO, Super Micro Computer, Inc. SMCI, Nvidia NVDA and Vertiv Holdings Co VRT. You can see the complete list of today’s Zacks #1 Rank stocks here.
The AI mania will continue to accelerate and provide a boost to tech stocks. The global digital shift has enhanced e-commerce for everything, ranging from remote working to entertainment and shopping, thereby bolstering strength in the sector. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology should continue to fuel a rally.
Additionally, any prospective reductions in interest rates – with the market forecasting at least two for the next year – coupled with the ongoing rise of AI will act as a major tailwind. Higher spending across software, semiconductors and digital media consumer sectors will further provide a boost to the sector.
Further, the tech titans have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline.
We have profiled the stocks below:
Applied Optoelectronics designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. With a market cap of $318.9 million, the stock has skyrocketed 407%.
Applied Optoelectronics has an estimated earnings growth rate of 48.51% for this year. It has a Zacks Rank #2 and a Growth Score of A.
Arlo Technologies' product design, wireless connectivity, cloud infrastructure and cutting-edge AI capabilities focus on delivering a seamless, smart home experience. It has an estimated earnings growth of 428.6% for this year and has a market cap of $955.6 million. The stock has surged more than 189%
Arlo Technologies has a Zacks Rank #2 and a Growth Score of A.
Super Micro designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. With a market cap of $12.5 billion, the company has an estimated earnings growth of 31.6% for the fiscal year ending June 2024.
Super Micro has risen 187% and has a Zacks Rank #1.
Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock has jumped nearly 185% so far this year. It has an estimated growth of 219.5% for the fiscal year ending January 2024.
Nvidia has a Zacks Rank #1 and a Growth Score of A.
Vertiv Holdings provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. It has an estimated earnings growth of 200% for this year and a market cap of $13.9 billion.
This Zacks Rank #1 stock is up nearly 167% so far this year and has a Growth Score of B.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These are Applied Optoelectronics, Inc. AAOI, Arlo Technologies, Inc. ARLO, Super Micro Computer, Inc. SMCI, Nvidia NVDA and Vertiv Holdings Co VRT. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report To read this article on Zacks.com click here. The decline seems short-lived per Wedbush analyst Dan Ives who believes that the technology sector is poised to weather a prolonged phase of increased interest rates.
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These are Applied Optoelectronics, Inc. AAOI, Arlo Technologies, Inc. ARLO, Super Micro Computer, Inc. SMCI, Nvidia NVDA and Vertiv Holdings Co VRT. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report To read this article on Zacks.com click here. Vertiv Holdings provides digital infrastructure and continuity solutions.
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report To read this article on Zacks.com click here. These are Applied Optoelectronics, Inc. AAOI, Arlo Technologies, Inc. ARLO, Super Micro Computer, Inc. SMCI, Nvidia NVDA and Vertiv Holdings Co VRT. Technology has turned out to be the most profitable sector so far this year, driven by the artificial intelligence (AI) boom, easing inflation and a surge in “magnificent seven.” Bets that the Fed will soon end its tightening policy have also driven the sector higher.
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These are Applied Optoelectronics, Inc. AAOI, Arlo Technologies, Inc. ARLO, Super Micro Computer, Inc. SMCI, Nvidia NVDA and Vertiv Holdings Co VRT. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report To read this article on Zacks.com click here. Higher spending across software, semiconductors and digital media consumer sectors will further provide a boost to the sector.
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4c4e9ad7-e037-4744-90f2-44e3e8826a3f
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9539.0
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2023-09-25 00:00:00 UTC
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Bear of the Day: Rambus (RMBS)
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AAOI
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https://www.nasdaq.com/articles/bear-of-the-day%3A-rambus-rmbs
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nan
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nan
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With the market caving through some serious support levels, it can feel like everything you touch turns to garbage. It’s the opposite of the Golden Touch of King Midas. Don’t feel alone if you’re out there watching your recent stock picks turn to stone. I am not here to tell you to be a fair-weather fan for your stock. Rather, now is a time to decide whether or not your stocks deserve your patience.
Patience pays when you are adding to a stock that has great earnings that keep moving in a positive direction. When earnings are moving the wrong way, you better have a good reason to stick with the script. Today’s Bear of the Day is a stock that has seen earnings move in the wrong direction.
Today’s Bear of the Day is Rambus (RMBS). Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, and OEMs; silicon IP comprising, interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and physical interface and digital controller IP to offer industry-leading, integrated memory, and interconnect subsystems.
The reason for the unfavorable rank is that analysts have been moving their earnings estimates to the downside. Over the last sixty days, analysts have cut their numbers for the current year and next year. The Zacks Consensus Estimate came down from $1.79 to $1.76 for the current year while next year’s number is off from $2.26 to $2.16.
Image Source: Zacks Investment Research
That’s not that bad in the grand scheme of things. This is a stock that has seen estimates rise consistently over the last three years. The problem has been the last six months. Earnings estimates appear to have topped out a bit. That is a departure from his stocks’ previous behavior of under promising and over-delivering.
The Electronics – Semiconductor industry is in the Bottom 22% of our Zacks Industry Rank. However, there are a few stocks within the industry which are in the good graces of our Zacks Rank. Those include Zacks Rank #2 (Buy) Applied Optoelectronics (AAOI) and Navitas Semiconductor (NVTS).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rambus, Inc. (RMBS) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those include Zacks Rank #2 (Buy) Applied Optoelectronics (AAOI) and Navitas Semiconductor (NVTS). Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report To read this article on Zacks.com click here. Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally.
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Those include Zacks Rank #2 (Buy) Applied Optoelectronics (AAOI) and Navitas Semiconductor (NVTS). Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report To read this article on Zacks.com click here. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, and OEMs; silicon IP comprising, interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and physical interface and digital controller IP to offer industry-leading, integrated memory, and interconnect subsystems.
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Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report To read this article on Zacks.com click here. Those include Zacks Rank #2 (Buy) Applied Optoelectronics (AAOI) and Navitas Semiconductor (NVTS). Today’s Bear of the Day is a stock that has seen earnings move in the wrong direction.
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Those include Zacks Rank #2 (Buy) Applied Optoelectronics (AAOI) and Navitas Semiconductor (NVTS). Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report To read this article on Zacks.com click here. Patience pays when you are adding to a stock that has great earnings that keep moving in a positive direction.
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ac5d6310-941b-4cf1-80ff-5e1ccd94a504
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9540.0
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2023-09-19 00:00:00 UTC
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Technology Sector Update for 09/19/2023: AAOI, DDD, SPNS, XLK, XSD
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-09-19-2023%3A-aaoi-ddd-spns-xlk-xsd
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nan
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Technology stocks were mixed pre-bell Tuesday as the Technology Select Sector SPDR Fund (XLK) was down 0.2%, while the SPDR S&P Semiconductor ETF (XSD) was slightly advancing recently.
Applied Optoelectronics (AAOI) was up more than 2% after saying it filed a patent infringement lawsuit Monday against Molex in the US District Court for the Northern District of California.
3D Systems (DDD) bagged a $10.8 million US Air Force contract for Large-format Metal 3D Printer Advanced Technology Demonstrator, according to a notice posted on the US Defense Department's website. 3D Systems was up 1.2% in recent premarket activity.
Sapiens International (SPNS) said the American Armed Forces Mutual Aid Association has chosen the company's customer acquisition software-as-a-service product suite as part of the financial services providers' initiative to modernize its customer acquisition processes. Sapiens International was marginally higher pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) was up more than 2% after saying it filed a patent infringement lawsuit Monday against Molex in the US District Court for the Northern District of California. Technology stocks were mixed pre-bell Tuesday as the Technology Select Sector SPDR Fund (XLK) was down 0.2%, while the SPDR S&P Semiconductor ETF (XSD) was slightly advancing recently. 3D Systems (DDD) bagged a $10.8 million US Air Force contract for Large-format Metal 3D Printer Advanced Technology Demonstrator, according to a notice posted on the US Defense Department's website.
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Applied Optoelectronics (AAOI) was up more than 2% after saying it filed a patent infringement lawsuit Monday against Molex in the US District Court for the Northern District of California. Technology stocks were mixed pre-bell Tuesday as the Technology Select Sector SPDR Fund (XLK) was down 0.2%, while the SPDR S&P Semiconductor ETF (XSD) was slightly advancing recently. 3D Systems (DDD) bagged a $10.8 million US Air Force contract for Large-format Metal 3D Printer Advanced Technology Demonstrator, according to a notice posted on the US Defense Department's website.
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Applied Optoelectronics (AAOI) was up more than 2% after saying it filed a patent infringement lawsuit Monday against Molex in the US District Court for the Northern District of California. Technology stocks were mixed pre-bell Tuesday as the Technology Select Sector SPDR Fund (XLK) was down 0.2%, while the SPDR S&P Semiconductor ETF (XSD) was slightly advancing recently. 3D Systems (DDD) bagged a $10.8 million US Air Force contract for Large-format Metal 3D Printer Advanced Technology Demonstrator, according to a notice posted on the US Defense Department's website.
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Applied Optoelectronics (AAOI) was up more than 2% after saying it filed a patent infringement lawsuit Monday against Molex in the US District Court for the Northern District of California. Technology stocks were mixed pre-bell Tuesday as the Technology Select Sector SPDR Fund (XLK) was down 0.2%, while the SPDR S&P Semiconductor ETF (XSD) was slightly advancing recently. 3D Systems (DDD) bagged a $10.8 million US Air Force contract for Large-format Metal 3D Printer Advanced Technology Demonstrator, according to a notice posted on the US Defense Department's website.
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1b075cfc-11d8-427d-b267-0e664e2442cb
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9541.0
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2023-09-13 00:00:00 UTC
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Markets Today: Stock Index Futures Slip as Mixed U.S. CPI Report Keeps Fed Rate Hikes in Play
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AAOI
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https://www.nasdaq.com/articles/markets-today%3A-stock-index-futures-slip-as-mixed-u.s.-cpi-report-keeps-fed-rate-hikes-in
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nan
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nan
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are down -0.06%, and Sep Nasdaq 100 E-Mini futures (NQU23) are down -0.14%.
Stock index futures this morning are moderately lower on a mixed U.S. CPI report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y, which pushed the 10-year T-note yield up to a 3-week high of 4.342% and bolsters the case for the Fed to keep interest rates higher for longer. However, stock losses were contained after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years.
U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 5% for a +25 bp rate hike at the September 20 FOMC meeting and 43% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield climbed to a 3-week high of 4.342% and is up +1.6 bp at 4.296%. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +2.5 bp at 2.668%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.380% and is down -3.5 bp at 4.381%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.60%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
The Euro Stoxx 50 today is moderately lower. European stocks are under pressure today on a report from Reuters that said the ECB expects inflation in the Eurozone to remain above 3% next year. That pushed European government bonds higher, with the 10-year German bund yield climbing to a 3-week high of 2.690%. The report also boosted market expectations for a 25 bp rate hike by the ECB at Thursday’s meeting to 64% from 42% on Tuesday.
Weaker-than-expected Eurozone industrial production news also weighed on European stocks. A brief rally in European carmakers lifted the overall market from its worst levels after the European Union said it was launching an investigation into Chinese subsidies for electric vehicles. However, carmakers gave up their gains and turned lower on concerns about a backlash from Chinese authorities.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
China’s Shanghai Composite Index posted moderate losses. Weakness in Chinese suppliers to Apple declined today after the Chinese government flagged “security incidents” with Apple’s iPhones, the government’s first comments on the topic after reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies. Also, Chinese electric vehicle makers sold off after the European Union said it was launching an investigation into Chinese subsidies for electric vehicles.
On the positive side, Chinese travel stocks and tourism-related companies rallied after Thailand said it would waive visa requirements for travelers from China. Before the pandemic, Chinese tourists accounted for over 30% of Thailand’s 40 million tourist arrivals in 2019. Also, property stocks gained as market sentiment improved on reports that developer Country Gardens received a yuan bond extension.
Japan’s Nikkei Stock Index closed slightly lower. Weakness in Japanese technology stocks led the overall market lower, following the -1% fall in the Nasdaq 100 Stock Index on Tuesday. Also, Japanese suppliers of Boeing fell after Boeing deliveries dropped for a second month after it reported deliveries of 737 Max jets were delayed due to a manufacturing defect where improperly drilled holes were found in a key component that helps control cabin pressure. Japanese stocks recovered from their worst levels on better-than-expected economic reports on August producer prices and Q3 BSI large manufacturing business conditions. Also, Japanese tire companies gained after Citigroup took a bullish stance on the sector due to an improving demand outlook and benefits from the shift to electric vehicles.
Japan Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y.
The Japan Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
Pre-Market U.S. Stock Movers
Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Airline stocks are under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) is down more than -2%. Also, Delta Air Lines (DAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) are down more than -1%.
Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Unity Software (U) lost almost -1% in pre-market trading after Oppenheimer noted negative publicity from the news that the company announced a new pricing structure for its game engine.
Ford Motor (F) rose more than +2% in pre-market trading after UBS double-upgraded the stock to buy from sell with a price target of $15.
General Motors (GM) gained nearly +1% in pre-market trading after UBS upgraded the stock to buy from neutral with a price target of $44.
Moderna (MRNA) climbed more than +3% in pre-market trading after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Match Group (MTCH) rose more than +2% in pre-market trading after JPMorgan Chase said the stock is now a top pick, and investors are “too pessimistic” about the company.
Earnings Reports (9/13/2023)
Cracker Barrel Old Country Store (CBRL), DZS Inc (DZSI), EVI Industries Inc (EVI), IBEX Holdings Ltd (IBEX), Presto Automation Inc (PRST), Radiant Logistics Inc (RLGT), REV Group Inc (REVG), Selectquote Inc (SLQT), Semtech Corp (SMTC), Vitesse Energy Inc (VTS).
More Stock Market News from Barchart
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y, which pushed the 10-year T-note yield up to a 3-week high of 4.342% and bolsters the case for the Fed to keep interest rates higher for longer. Also, Japanese tire companies gained after Citigroup took a bullish stance on the sector due to an improving demand outlook and benefits from the shift to electric vehicles.
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Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Weakness in Chinese suppliers to Apple declined today after the Chinese government flagged “security incidents” with Apple’s iPhones, the government’s first comments on the topic after reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies.
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Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Pre-Market U.S. Stock Movers Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
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Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. Stock index futures this morning are moderately lower on a mixed U.S. CPI report. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +2.5 bp at 2.668%.
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e00924b4-1d3f-44d4-963e-e4d7717705b7
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9542.0
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2023-09-13 00:00:00 UTC
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Technology Sector Update for 09/13/2023: AAOI, SQSP, INTU, XLK, XSD
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-09-13-2023%3A-aaoi-sqsp-intu-xlk-xsd
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nan
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nan
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Technology stocks were declining premarket Wednesday with the Technology Select Sector SPDR Fund (XLK) 0.02% lower and the SPDR S&P Semiconductor ETF (XSD) recently down 0.3%.
Applied Optoelectronics (AAOI) shares were slipping past 8% after saying it amended its equity distribution agreement dated March 24 with Raymond James & Associates to increase the size of the offering.
Squarespace (SQSP) stock was slightly declining after it priced a secondary underwritten public offering of 5 million class A common shares by General Atlantic at $29 per share.
Intuit (INTU) shares were marginally lower after it priced an offering of $4 billion of senior notes in four series.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares were slipping past 8% after saying it amended its equity distribution agreement dated March 24 with Raymond James & Associates to increase the size of the offering. Technology stocks were declining premarket Wednesday with the Technology Select Sector SPDR Fund (XLK) 0.02% lower and the SPDR S&P Semiconductor ETF (XSD) recently down 0.3%. Intuit (INTU) shares were marginally lower after it priced an offering of $4 billion of senior notes in four series.
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Applied Optoelectronics (AAOI) shares were slipping past 8% after saying it amended its equity distribution agreement dated March 24 with Raymond James & Associates to increase the size of the offering. Technology stocks were declining premarket Wednesday with the Technology Select Sector SPDR Fund (XLK) 0.02% lower and the SPDR S&P Semiconductor ETF (XSD) recently down 0.3%. Intuit (INTU) shares were marginally lower after it priced an offering of $4 billion of senior notes in four series.
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Applied Optoelectronics (AAOI) shares were slipping past 8% after saying it amended its equity distribution agreement dated March 24 with Raymond James & Associates to increase the size of the offering. Technology stocks were declining premarket Wednesday with the Technology Select Sector SPDR Fund (XLK) 0.02% lower and the SPDR S&P Semiconductor ETF (XSD) recently down 0.3%. Squarespace (SQSP) stock was slightly declining after it priced a secondary underwritten public offering of 5 million class A common shares by General Atlantic at $29 per share.
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Applied Optoelectronics (AAOI) shares were slipping past 8% after saying it amended its equity distribution agreement dated March 24 with Raymond James & Associates to increase the size of the offering. Technology stocks were declining premarket Wednesday with the Technology Select Sector SPDR Fund (XLK) 0.02% lower and the SPDR S&P Semiconductor ETF (XSD) recently down 0.3%. Squarespace (SQSP) stock was slightly declining after it priced a secondary underwritten public offering of 5 million class A common shares by General Atlantic at $29 per share.
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260026d3-7cd9-4cef-87fa-fd5ccf26b555
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9543.0
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2023-09-13 00:00:00 UTC
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Are Computer and Technology Stocks Lagging Applied Optoelectronics (AAOI) This Year?
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AAOI
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https://www.nasdaq.com/articles/are-computer-and-technology-stocks-lagging-applied-optoelectronics-aaoi-this-year-0
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Applied Optoelectronics (AAOI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Optoelectronics is one of 633 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AAOI has returned 501.1% so far this year. At the same time, Computer and Technology stocks have gained an average of 38.2%. This shows that Applied Optoelectronics is outperforming its peers so far this year.
Axcelis Technologies (ACLS) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 125.2%.
For Axcelis Technologies, the consensus EPS estimate for the current year has increased 8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Applied Optoelectronics is a member of the Electronics - Semiconductors industry, which includes 41 individual companies and currently sits at #188 in the Zacks Industry Rank. On average, stocks in this group have gained 42.1% this year, meaning that AAOI is performing better in terms of year-to-date returns.
In contrast, Axcelis Technologies falls under the Electronics - Manufacturing Machinery industry. Currently, this industry has 9 stocks and is ranked #112. Since the beginning of the year, the industry has moved +32.7%.
Investors with an interest in Computer and Technology stocks should continue to track Applied Optoelectronics and Axcelis Technologies. These stocks will be looking to continue their solid performance.
Top 5 ChatGPT Stocks Revealed
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Is Applied Optoelectronics (AAOI) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 501.1% so far this year.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Applied Optoelectronics (AAOI) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Applied Optoelectronics (AAOI) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher.
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Is Applied Optoelectronics (AAOI) one of those stocks right now? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 501.1% so far this year.
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91996885-a874-41e5-a173-1b2e3f2acf2b
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9544.0
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2023-09-13 00:00:00 UTC
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Stocks Slightly Higher after Mixed U.S. CPI Report
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AAOI
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https://www.nasdaq.com/articles/stocks-slightly-higher-after-mixed-u.s.-cpi-report
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.23%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.41%.
Stock indexes this morning are slightly higher. Stocks are posting modest gains today after a mixed U.S. consumer price report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y. However, stocks found support after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the smallest increase in almost two years.
Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 3% for a +25 bp rate hike at the September 20 FOMC meeting and 42% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield fell from a 3-week high of 4.342% and is down -0.2 bp at 4.278%. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +1.5 bp at 2.658%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.345% and is down -6.1 bp at 4.355%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.40%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
Today’s stock movers…
Moderna (MRNA) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Westrock (WRK) is up more than +2%, adding to Tuesday’s +2% gain after Smurfit Kappa Group Plc agreed to acquire the company in a $11.2 billion deal.
Ford Motor (F) is up more than +2% after UBS double-upgraded the stock to buy from sell with a price target of $15.
General Motors (GM) is up nearly +1% after UBS upgraded the stock to buy from neutral with a price target of $44.
Morgan Stanley (MS) is up more than +2%, adding to Tuesday’s +2% gain after investment manager Simkowitz said, “We are more confident now than any time this year about an improved outlook for 2024.”
Airline stocks are under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) is down more than -4% to lead losers in the S&P 500. Also, Delta Air Lines (DAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) are down more than -2%.
Regional bank stocks are retreating today on comments from Zions Bancorp CEO Simmons, who said they are seeing a slowdown in loan demand. As a result, Zions Bancorp (ZION) and U.S. Bancorp (USB) are down more than -4%. Also, Comerica (CMA) Truist Financial (TFC) are down more than -2%. In addition, M&T Bank (MTB), Citizens Financial Group (CFG), Regions Financial (RF), Huntington Bancshares (HBAN), and KeyCorp (KEY) are down more than -1%.
Applied Optoelectronics (AAOI) is down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Verizon Communications (VZ) is down more than -1% after Bloomberg Intelligence said T-Mobile may continue to gain market share from Verizon as it deploys the nationwide mid-band spectrum acquired from Sprint.
Apple (AAPL) is down nearly -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Across the markets…
December 10-year T-notes (ZNZ23) today are up +2 ticks, and the 10-year T-note yield is down -0.2 bp at 4.278%. Dec T-note prices today recovered from a 3-week low and moved higher, and the 10-year T-note yield fell back from a 3-week high of 4.342% and moved lower. T-notes found support today after U.S. Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years. T-notes initially fell today on negative carryover from a slump in 10-year German bunds to a 3-week low. Also, the stronger-than-expected U.S. Aug CPI was bearish for T-notes. In addition, supply pressures are weighing on T-notes as the Treasury will auction $20 billion of re-opened 30-year T-bonds later today as part of this week’s $99 billion package of T-note and T-bond auctions.
The dollar index (DXY00) today is down by -0.11%. The dollar today is posting modest losses. Strength in stocks today has curbed the liquidity demand for the dollar. Also, T-note yields today gave up an early advance and turned lower, weighing in the dollar.
EUR/USD (^EURUSD) is down by -0.09%. Weaker-than-expected Eurozone economic news today weighed on the euro after Eurozone Jul industrial production fell more than expected. Losses in the euro were limited after the odds for a 25 bp rate hike by the ECB on Thursday rose to 64% from 46% on Tuesday after Reuters reported the ECB’s inflation projections, to be released Thursday, will remain above 3% for 2024, bolstering the cast for more hawkish ECB policy.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
USD/JPY (^USDJPY) is up +0.24%. The yen today is moderately lower. Central bank divergence is weighing on the yen, with the ECB and Federal Reserve currently raising interest rates while the BOJ maintains record-low interest rates.
Today’s Japanese economic news was mixed for the yen. On the negative side, Japan's Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y and dovish for BOJ policy. Conversely, the Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
October gold (GCV3) today is down -0.1 (-0.01%), and Dec silver (SIZ23) is down -0.247 (-1.06%). Precious metals prices this morning are moderately lower, with gold falling to a 3-week low and silver dropping to a 3-1/2 week low. Increased expectations for a 25 bp rate hike by the ECB Thursday are undercutting precious metals as the odds for an ECB rate hike rose to 66% today from 46% Tuesday after Reuters reported the ECB’s new economic projections will show inflation remaining above 3% in 2024, bolstering the case for tighter ECB policy.
Also, the continued liquidation of gold holdings by funds is bearish for gold after long gold holdings in ETFs fell to a 3-1/3 year low Tuesday. A weaker dollar today is limiting losses in metals prices. Also, an increase in inflation expectations boosted demand for precious metals as an inflation hedge after the U.S. 10-year breakeven inflation rate climbed to a 4-week high today of 2.371%.
More Stock Market News from Barchart
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Markets Today: Stock Index Futures Slip as Mixed U.S. CPI Report Keeps Fed Rate Hikes in Play
3 Professional Services Companies Ready to Pop
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) is down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Today’s stock movers… Moderna (MRNA) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
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Applied Optoelectronics (AAOI) is down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Losses in the euro were limited after the odds for a 25 bp rate hike by the ECB on Thursday rose to 64% from 46% on Tuesday after Reuters reported the ECB’s inflation projections, to be released Thursday, will remain above 3% for 2024, bolstering the cast for more hawkish ECB policy.
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Applied Optoelectronics (AAOI) is down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. Gains in U.S. stock index futures are limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Losses in the euro were limited after the odds for a 25 bp rate hike by the ECB on Thursday rose to 64% from 46% on Tuesday after Reuters reported the ECB’s inflation projections, to be released Thursday, will remain above 3% for 2024, bolstering the cast for more hawkish ECB policy.
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Applied Optoelectronics (AAOI) is down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology. Stocks are posting modest gains today after a mixed U.S. consumer price report. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +1.5 bp at 2.658%.
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7dacd6f9-ed04-42ab-9ab2-be858494fc64
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9545.0
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2023-08-31 00:00:00 UTC
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Applied Optoelectronics (AAOI) Price Target Increased by 152.00% to 16.07
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-price-target-increased-by-152.00-to-16.07
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nan
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nan
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 16.06 / share. This is an increase of 152.00% from the prior estimate of 6.38 dated August 1, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 11.62 to a high of 21.00 / share. The average price target represents an increase of 5.55% from the latest reported closing price of 15.22 / share.
For more in-depth coverage of Applied Optoelectronics, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 99 funds or institutions reporting positions in Applied Optoelectronics. This is an increase of 3 owner(s) or 3.12% in the last quarter. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. Total shares owned by institutions increased in the last three months by 31.29% to 14,523K shares.
The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
What are Other Shareholders Doing?
Ameriprise Financial holds 1,268K shares representing 3.95% ownership of the company. In it's prior filing, the firm reported owning 1,330K shares, representing a decrease of 4.92%. The firm increased its portfolio allocation in AAOI by 1,232.24% over the last quarter.
Portolan Capital Management holds 1,215K shares representing 3.78% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Royce & Associates holds 1,002K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 697K shares, representing an increase of 30.43%. The firm increased its portfolio allocation in AAOI by 276.01% over the last quarter.
CSMIX - Columbia Small Cap Value Fund I holds 844K shares representing 2.63% ownership of the company. In it's prior filing, the firm reported owning 861K shares, representing a decrease of 1.95%. The firm decreased its portfolio allocation in AAOI by 8.13% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 829K shares representing 2.58% ownership of the company. No change in the last quarter.
Applied Optoelectronics Background Information
(This description is provided by the company.)
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
Additional reading:
APPLIED OPTOELECTRONICS, INC. 2023 EQUITY INDUCEMENT PLAN
Applied Optoelectronics Reports Second Quarter 2023 Results
Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 16.06 / share. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 16.06 / share. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 16.06 / share. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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The firm increased its portfolio allocation in AAOI by 1,232.24% over the last quarter. The average one-year price target for Applied Optoelectronics (NASDAQ:AAOI) has been revised to 16.06 / share. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%.
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0b1a2384-0624-4969-b2b5-002277ef51c5
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9546.0
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2023-08-31 00:00:00 UTC
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Northland Capital Markets Maintains Applied Optoelectronics (AAOI) Outperform Recommendation
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AAOI
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https://www.nasdaq.com/articles/northland-capital-markets-maintains-applied-optoelectronics-aaoi-outperform-recommendation
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nan
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nan
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Fintel reports that on August 30, 2023, Northland Capital Markets maintained coverage of Applied Optoelectronics (NASDAQ:AAOI) with a Outperform recommendation.
Analyst Price Forecast Suggests 58.11% Downside
As of August 2, 2023, the average one-year price target for Applied Optoelectronics is 6.38. The forecasts range from a low of 2.52 to a high of $10.50. The average price target represents a decrease of 58.11% from its latest reported closing price of 15.22.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Applied Optoelectronics is 264MM, an increase of 23.95%. The projected annual non-GAAP EPS is -0.79.
For more in-depth coverage of Applied Optoelectronics, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 99 funds or institutions reporting positions in Applied Optoelectronics. This is an increase of 3 owner(s) or 3.12% in the last quarter. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. Total shares owned by institutions increased in the last three months by 31.29% to 14,523K shares.
The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
What are Other Shareholders Doing?
Ameriprise Financial holds 1,268K shares representing 3.95% ownership of the company. In it's prior filing, the firm reported owning 1,330K shares, representing a decrease of 4.92%. The firm increased its portfolio allocation in AAOI by 1,232.24% over the last quarter.
Portolan Capital Management holds 1,215K shares representing 3.78% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Royce & Associates holds 1,002K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 697K shares, representing an increase of 30.43%. The firm increased its portfolio allocation in AAOI by 276.01% over the last quarter.
CSMIX - Columbia Small Cap Value Fund I holds 844K shares representing 2.63% ownership of the company. In it's prior filing, the firm reported owning 861K shares, representing a decrease of 1.95%. The firm decreased its portfolio allocation in AAOI by 8.13% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 829K shares representing 2.58% ownership of the company. No change in the last quarter.
Applied Optoelectronics Background Information
(This description is provided by the company.)
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
Additional reading:
APPLIED OPTOELECTRONICS, INC. 2023 EQUITY INDUCEMENT PLAN
Applied Optoelectronics Reports Second Quarter 2023 Results
Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 30, 2023, Northland Capital Markets maintained coverage of Applied Optoelectronics (NASDAQ:AAOI) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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Fintel reports that on August 30, 2023, Northland Capital Markets maintained coverage of Applied Optoelectronics (NASDAQ:AAOI) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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Fintel reports that on August 30, 2023, Northland Capital Markets maintained coverage of Applied Optoelectronics (NASDAQ:AAOI) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%. The put/call ratio of AAOI is 0.29, indicating a bullish outlook.
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The firm decreased its portfolio allocation in AAOI by 8.13% over the last quarter. Fintel reports that on August 30, 2023, Northland Capital Markets maintained coverage of Applied Optoelectronics (NASDAQ:AAOI) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAOI is 0.18%, an increase of 275.34%.
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c3938484-fa89-4392-ac40-721c198b30a6
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9547.0
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2023-08-28 00:00:00 UTC
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Is Applied Optoelectronics (AAOI) Stock Outpacing Its Computer and Technology Peers This Year?
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AAOI
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https://www.nasdaq.com/articles/is-applied-optoelectronics-aaoi-stock-outpacing-its-computer-and-technology-peers-this-0
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Applied Optoelectronics (AAOI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Optoelectronics is one of 631 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, AAOI has returned 587.3% so far this year. In comparison, Computer and Technology companies have returned an average of 35.7%. This means that Applied Optoelectronics is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Axcelis Technologies (ACLS). The stock is up 112.4% year-to-date.
For Axcelis Technologies, the consensus EPS estimate for the current year has increased 8.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Applied Optoelectronics belongs to the Electronics - Semiconductors industry, a group that includes 41 individual stocks and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 41.4% so far this year, so AAOI is performing better this group in terms of year-to-date returns.
In contrast, Axcelis Technologies falls under the Electronics - Manufacturing Machinery industry. Currently, this industry has 9 stocks and is ranked #67. Since the beginning of the year, the industry has moved +35.3%.
Applied Optoelectronics and Axcelis Technologies could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Is Applied Optoelectronics (AAOI) one of those stocks right now? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 587.3% so far this year.
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Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Applied Optoelectronics (AAOI) one of those stocks right now?
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Applied Optoelectronics (AAOI) one of those stocks right now? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher.
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Is Applied Optoelectronics (AAOI) one of those stocks right now? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 587.3% so far this year.
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0a5d63a0-8bbf-4155-b648-d2f00f221079
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9548.0
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2023-08-21 00:00:00 UTC
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Monday Sector Leaders: Semiconductors, Education & Training Services
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AAOI
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-semiconductors-education-training-services
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nan
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nan
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 0.9%. Leading the group were shares of Applied Optoelectronics, up about 17.1% and shares of Nvidia up about 5.2% on the day.
Also showing relative strength are education & training services shares, up on the day by about 0.8% as a group, led by 2U, trading up by about 3.5% and New Oriental Education & Technology Group, trading up by about 3.3% on Monday.
VIDEO: Monday Sector Leaders: Semiconductors, Education & Training Services
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 0.9%. Also showing relative strength are education & training services shares, up on the day by about 0.8% as a group, led by 2U, trading up by about 3.5% and New Oriental Education & Technology Group, trading up by about 3.3% on Monday. VIDEO: Monday Sector Leaders: Semiconductors, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 0.9%. Also showing relative strength are education & training services shares, up on the day by about 0.8% as a group, led by 2U, trading up by about 3.5% and New Oriental Education & Technology Group, trading up by about 3.3% on Monday. VIDEO: Monday Sector Leaders: Semiconductors, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 0.9%. Also showing relative strength are education & training services shares, up on the day by about 0.8% as a group, led by 2U, trading up by about 3.5% and New Oriental Education & Technology Group, trading up by about 3.3% on Monday. VIDEO: Monday Sector Leaders: Semiconductors, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 0.9%. Leading the group were shares of Applied Optoelectronics, up about 17.1% and shares of Nvidia up about 5.2% on the day. Also showing relative strength are education & training services shares, up on the day by about 0.8% as a group, led by 2U, trading up by about 3.5% and New Oriental Education & Technology Group, trading up by about 3.3% on Monday.
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f18b9be7-076f-4ec2-b311-47ef24892dd2
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9549.0
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2023-08-21 00:00:00 UTC
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Technology Sector Update for 08/21/2023: PANW, NSSC, AAOI
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-08-21-2023%3A-panw-nssc-aaoi
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nan
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nan
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Tech stocks were higher Monday afternoon with the Technology Select Sector SPDR Fund (XLK) gaining 1.6% and the Philadelphia Semiconductor index adding 2.1%.
In corporate news, Palo Alto Networks (PANW) shares jumped 16% after the company reported Friday higher fiscal Q4 adjusted earnings and revenue. Deutsche Bank raised Palo Alto Networks' price target to $270 from $225 while maintaining its buy rating.
Napco Security Technologies (NSSC) shares slumped 46% after analysts including B. Riley Securities, William Blair and Lake Street Capital cut their ratings on the company after it restated results for the first three quarters of fiscal 2023 because of accounting errors.
Applied Optoelectronics (AAOI) shares rose 17%. Chief Executive Officer Chih-Hsiang Lin executed a stock purchase of 20,000 shares on Thursday for $247,615.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares rose 17%. Tech stocks were higher Monday afternoon with the Technology Select Sector SPDR Fund (XLK) gaining 1.6% and the Philadelphia Semiconductor index adding 2.1%. In corporate news, Palo Alto Networks (PANW) shares jumped 16% after the company reported Friday higher fiscal Q4 adjusted earnings and revenue.
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Applied Optoelectronics (AAOI) shares rose 17%. In corporate news, Palo Alto Networks (PANW) shares jumped 16% after the company reported Friday higher fiscal Q4 adjusted earnings and revenue. Deutsche Bank raised Palo Alto Networks' price target to $270 from $225 while maintaining its buy rating.
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Applied Optoelectronics (AAOI) shares rose 17%. In corporate news, Palo Alto Networks (PANW) shares jumped 16% after the company reported Friday higher fiscal Q4 adjusted earnings and revenue. Napco Security Technologies (NSSC) shares slumped 46% after analysts including B. Riley Securities, William Blair and Lake Street Capital cut their ratings on the company after it restated results for the first three quarters of fiscal 2023 because of accounting errors.
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Applied Optoelectronics (AAOI) shares rose 17%. Tech stocks were higher Monday afternoon with the Technology Select Sector SPDR Fund (XLK) gaining 1.6% and the Philadelphia Semiconductor index adding 2.1%. In corporate news, Palo Alto Networks (PANW) shares jumped 16% after the company reported Friday higher fiscal Q4 adjusted earnings and revenue.
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a1c74166-9fce-426c-b37b-581dbf757d2e
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9550.0
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2023-08-21 00:00:00 UTC
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Unusual Call Option Trade in Applied Optoelectronics (AAOI) Worth $333.96K
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AAOI
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-applied-optoelectronics-aaoi-worth-%24333.96k
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nan
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nan
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On August 21, 2023 at 11:33:13 ET an unusually large $333.96K block of Call contracts in Applied Optoelectronics (AAOI) was sold, with a strike price of $20.00 / share, expiring in 25 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.91 sigmas above the mean, placing it in the 97.78th percentile of all recent large trades made in AAOI options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 98 funds or institutions reporting positions in Applied Optoelectronics. This is an increase of 3 owner(s) or 3.16% in the last quarter. Average portfolio weight of all funds dedicated to AAOI is 0.13%, an increase of 209.32%. Total shares owned by institutions increased in the last three months by 12.78% to 12,143K shares.
The put/call ratio of AAOI is 0.38, indicating a bullish outlook.
For more in-depth coverage of Applied Optoelectronics, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 50.20% Downside
As of August 2, 2023, the average one-year price target for Applied Optoelectronics is 6.38. The forecasts range from a low of 2.52 to a high of $10.50. The average price target represents a decrease of 50.20% from its latest reported closing price of 12.80.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Applied Optoelectronics is 264MM, an increase of 23.95%. The projected annual non-GAAP EPS is -0.79.
What are Other Shareholders Doing?
Ameriprise Financial holds 1,268K shares representing 3.95% ownership of the company. In it's prior filing, the firm reported owning 1,330K shares, representing a decrease of 4.92%. The firm decreased its portfolio allocation in AAOI by 55.17% over the last quarter.
Portolan Capital Management holds 1,215K shares representing 3.78% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Royce & Associates holds 1,002K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 697K shares, representing an increase of 30.43%. The firm increased its portfolio allocation in AAOI by 276.01% over the last quarter.
CSMIX - Columbia Small Cap Value Fund I holds 844K shares representing 2.63% ownership of the company. In it's prior filing, the firm reported owning 861K shares, representing a decrease of 1.95%. The firm decreased its portfolio allocation in AAOI by 8.13% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 829K shares representing 2.58% ownership of the company. No change in the last quarter.
Applied Optoelectronics Background Information
(This description is provided by the company.)
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
Additional reading:
APPLIED OPTOELECTRONICS, INC. 2023 EQUITY INDUCEMENT PLAN
Applied Optoelectronics Reports Second Quarter 2023 Results
Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan
Statement of Work #2 – Design and Assembly
THIRD AMENDMENT TO LEASE
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On August 21, 2023 at 11:33:13 ET an unusually large $333.96K block of Call contracts in Applied Optoelectronics (AAOI) was sold, with a strike price of $20.00 / share, expiring in 25 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.91 sigmas above the mean, placing it in the 97.78th percentile of all recent large trades made in AAOI options. Average portfolio weight of all funds dedicated to AAOI is 0.13%, an increase of 209.32%.
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On August 21, 2023 at 11:33:13 ET an unusually large $333.96K block of Call contracts in Applied Optoelectronics (AAOI) was sold, with a strike price of $20.00 / share, expiring in 25 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.91 sigmas above the mean, placing it in the 97.78th percentile of all recent large trades made in AAOI options. Average portfolio weight of all funds dedicated to AAOI is 0.13%, an increase of 209.32%.
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On August 21, 2023 at 11:33:13 ET an unusually large $333.96K block of Call contracts in Applied Optoelectronics (AAOI) was sold, with a strike price of $20.00 / share, expiring in 25 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.91 sigmas above the mean, placing it in the 97.78th percentile of all recent large trades made in AAOI options. Average portfolio weight of all funds dedicated to AAOI is 0.13%, an increase of 209.32%.
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On August 21, 2023 at 11:33:13 ET an unusually large $333.96K block of Call contracts in Applied Optoelectronics (AAOI) was sold, with a strike price of $20.00 / share, expiring in 25 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.91 sigmas above the mean, placing it in the 97.78th percentile of all recent large trades made in AAOI options. Average portfolio weight of all funds dedicated to AAOI is 0.13%, an increase of 209.32%.
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f8ade5d4-88c8-42b2-8703-6f8199b69074
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9551.0
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2023-08-14 00:00:00 UTC
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Monday Sector Leaders: Waste Management, Semiconductors
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AAOI
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-waste-management-semiconductors
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nan
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nan
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In trading on Monday, waste management shares were relative leaders, up on the day by about 1.1%. Leading the group were shares of Perma-fix Environmental Services, up about 4.2% and shares of Aris Water Solutions Inc Class A (ARIS) up about 3.5% on the day.
Also showing relative strength are semiconductors shares, up on the day by about 0.9% as a group, led by Applied Optoelectronics, trading higher by about 7.8% and Gsi Technology, trading higher by about 7.7% on Monday.
VIDEO: Monday Sector Leaders: Waste Management, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, waste management shares were relative leaders, up on the day by about 1.1%. Also showing relative strength are semiconductors shares, up on the day by about 0.9% as a group, led by Applied Optoelectronics, trading higher by about 7.8% and Gsi Technology, trading higher by about 7.7% on Monday. VIDEO: Monday Sector Leaders: Waste Management, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, waste management shares were relative leaders, up on the day by about 1.1%. Also showing relative strength are semiconductors shares, up on the day by about 0.9% as a group, led by Applied Optoelectronics, trading higher by about 7.8% and Gsi Technology, trading higher by about 7.7% on Monday. VIDEO: Monday Sector Leaders: Waste Management, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the group were shares of Perma-fix Environmental Services, up about 4.2% and shares of Aris Water Solutions Inc Class A (ARIS) up about 3.5% on the day. Also showing relative strength are semiconductors shares, up on the day by about 0.9% as a group, led by Applied Optoelectronics, trading higher by about 7.8% and Gsi Technology, trading higher by about 7.7% on Monday. VIDEO: Monday Sector Leaders: Waste Management, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, waste management shares were relative leaders, up on the day by about 1.1%. Leading the group were shares of Perma-fix Environmental Services, up about 4.2% and shares of Aris Water Solutions Inc Class A (ARIS) up about 3.5% on the day. Also showing relative strength are semiconductors shares, up on the day by about 0.9% as a group, led by Applied Optoelectronics, trading higher by about 7.8% and Gsi Technology, trading higher by about 7.7% on Monday.
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5db7c579-650b-48b9-ad44-9da4833ee80a
|
9552.0
|
2023-08-11 00:00:00 UTC
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Friday Sector Laggards: Hospital & Medical Practitioners, Semiconductors
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AAOI
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https://www.nasdaq.com/articles/friday-sector-laggards%3A-hospital-medical-practitioners-semiconductors
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nan
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nan
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In trading on Friday, hospital & medical practitioners shares were relative laggards, down on the day by about 2.9%. Helping drag down the group were shares of Cano Health, down about 68.3% and shares of Agilon Health off about 4% on the day.
Also lagging the market Friday are semiconductors shares, down on the day by about 2.7% as a group, led down by Maxeon Solar Technologies, trading lower by about 32.9% and Applied Optoelectronics, trading lower by about 13%.
VIDEO: Friday Sector Laggards: Hospital & Medical Practitioners, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, hospital & medical practitioners shares were relative laggards, down on the day by about 2.9%. Also lagging the market Friday are semiconductors shares, down on the day by about 2.7% as a group, led down by Maxeon Solar Technologies, trading lower by about 32.9% and Applied Optoelectronics, trading lower by about 13%. VIDEO: Friday Sector Laggards: Hospital & Medical Practitioners, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, hospital & medical practitioners shares were relative laggards, down on the day by about 2.9%. Also lagging the market Friday are semiconductors shares, down on the day by about 2.7% as a group, led down by Maxeon Solar Technologies, trading lower by about 32.9% and Applied Optoelectronics, trading lower by about 13%. VIDEO: Friday Sector Laggards: Hospital & Medical Practitioners, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, hospital & medical practitioners shares were relative laggards, down on the day by about 2.9%. Also lagging the market Friday are semiconductors shares, down on the day by about 2.7% as a group, led down by Maxeon Solar Technologies, trading lower by about 32.9% and Applied Optoelectronics, trading lower by about 13%. VIDEO: Friday Sector Laggards: Hospital & Medical Practitioners, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, hospital & medical practitioners shares were relative laggards, down on the day by about 2.9%. Helping drag down the group were shares of Cano Health, down about 68.3% and shares of Agilon Health off about 4% on the day. Also lagging the market Friday are semiconductors shares, down on the day by about 2.7% as a group, led down by Maxeon Solar Technologies, trading lower by about 32.9% and Applied Optoelectronics, trading lower by about 13%.
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9bef76fc-5dd3-43c4-9924-a90b881f9279
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9553.0
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2023-08-10 00:00:00 UTC
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Is Applied Optoelectronics (AAOI) Outperforming Other Computer and Technology Stocks This Year?
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AAOI
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https://www.nasdaq.com/articles/is-applied-optoelectronics-aaoi-outperforming-other-computer-and-technology-stocks-this
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Applied Optoelectronics is a member of the Computer and Technology sector. This group includes 631 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AAOI has returned 543.4% so far this year. At the same time, Computer and Technology stocks have gained an average of 36.1%. This means that Applied Optoelectronics is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Airbnb, Inc. (ABNB), has outperformed the sector so far this year. The stock's year-to-date return is 61.3%.
In Airbnb, Inc.'s case, the consensus EPS estimate for the current year increased 7.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Applied Optoelectronics belongs to the Electronics - Semiconductors industry, which includes 41 individual stocks and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have gained 45.5% this year, meaning that AAOI is performing better in terms of year-to-date returns.
On the other hand, Airbnb, Inc. belongs to the Internet - Content industry. This 16-stock industry is currently ranked #92. The industry has moved +30.2% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Optoelectronics and Airbnb, Inc. as they could maintain their solid performance.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Over the past three months, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 543.4% so far this year.
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Over the past three months, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole?
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Over the past three months, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher.
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Applied Optoelectronics (AAOI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Over the past three months, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. Based on the most recent data, AAOI has returned 543.4% so far this year.
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cdbb07e8-64fa-487f-a4c1-899cb99fbce8
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9554.0
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2023-08-04 00:00:00 UTC
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Pre-market Movers: TUP, ASRT, DOCN, WISH, AAOI…
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AAOI
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https://www.nasdaq.com/articles/pre-market-movers%3A-tup-asrt-docn-wish-aaoi...
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nan
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nan
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(RTTNews) - The following are some of the stocks making big moves in Friday's pre-market trading (as of 07.50 A.M. ET).
In the Green
Tupperware Brands Corporation (TUP) is up over 56% at $5.51. Applied Optoelectronics, Inc. (AAOI) is up over 20% at $7.96. Advanced Health Intelligence Ltd. (AHI) is up over 20% at $4.97. Arisz Acquisition Corp. (ARIZ) is up over 12% at $11.95. InterPrivate III Financial Partners Inc. (IPVF) is up over 6% at $11.70.
In the Red
Assertio Holdings, Inc. (ASRT) is down over 48% at $2.76. DigitalOcean Holdings, Inc. (DOCN) is down over 21% at $36.78. ContextLogic Inc. (WISH) is down over 21% at $6.61. Fortinet, Inc. (FTNT) is down over 18% at $61.46. Tandem Diabetes Care, Inc. (TNDM) is down over 16% at $26.80. OUTFRONT Media Inc. (OUT) is down over 14% at $12.40. INVO Bioscience, Inc. (INVO) is down over 13% at $2.73. TransMedics Group, Inc. (TMDX) is down over 12% at $77.00. Redfin Corporation (RDFN) is down over 10% at $12.86. QuantumScape Corporation (QS) is down over 10% at $7.90. Bluejay Diagnostics, Inc. (BJDX) is down over 10% at $7.47. Opendoor Technologies Inc. (OPEN) is down over 10% at $4.29. Synaptics Incorporated (SYNA) is down over 9% at $80.99. ModivCare Inc. (MODV) is down over 9% at $34.45.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, Inc. (AAOI) is up over 20% at $7.96. (RTTNews) - The following are some of the stocks making big moves in Friday's pre-market trading (as of 07.50 A.M. In the Green Tupperware Brands Corporation (TUP) is up over 56% at $5.51.
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Applied Optoelectronics, Inc. (AAOI) is up over 20% at $7.96. (RTTNews) - The following are some of the stocks making big moves in Friday's pre-market trading (as of 07.50 A.M. INVO Bioscience, Inc. (INVO) is down over 13% at $2.73.
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Applied Optoelectronics, Inc. (AAOI) is up over 20% at $7.96. In the Green Tupperware Brands Corporation (TUP) is up over 56% at $5.51. In the Red Assertio Holdings, Inc. (ASRT) is down over 48% at $2.76.
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Applied Optoelectronics, Inc. (AAOI) is up over 20% at $7.96. (RTTNews) - The following are some of the stocks making big moves in Friday's pre-market trading (as of 07.50 A.M. In the Green Tupperware Brands Corporation (TUP) is up over 56% at $5.51.
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e2941421-100f-4ec4-aa88-a3b640ade006
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9555.0
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2023-08-04 00:00:00 UTC
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B. Riley Securities Upgrades Applied Optoelectronics (AAOI)
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AAOI
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https://www.nasdaq.com/articles/b.-riley-securities-upgrades-applied-optoelectronics-aaoi
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nan
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nan
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Fintel reports that on August 4, 2023, B. Riley Securities upgraded their outlook for Applied Optoelectronics (NASDAQ:AAOI) from Neutral to Buy .
Analyst Price Forecast Suggests 3.26% Downside
As of August 2, 2023, the average one-year price target for Applied Optoelectronics is 6.38. The forecasts range from a low of 2.52 to a high of $10.50. The average price target represents a decrease of 3.26% from its latest reported closing price of 6.59.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Applied Optoelectronics is 264MM, an increase of 18.02%. The projected annual non-GAAP EPS is -0.79.
For more in-depth coverage of Applied Optoelectronics, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 96 funds or institutions reporting positions in Applied Optoelectronics. This is a decrease of 4 owner(s) or 4.00% in the last quarter. Average portfolio weight of all funds dedicated to AAOI is 0.05%, an increase of 15.01%. Total shares owned by institutions decreased in the last three months by 5.48% to 10,858K shares.
The put/call ratio of AAOI is 0.24, indicating a bullish outlook.
What are Other Shareholders Doing?
Ameriprise Financial holds 1,330K shares representing 4.18% ownership of the company. In it's prior filing, the firm reported owning 1,383K shares, representing a decrease of 3.97%. The firm increased its portfolio allocation in AAOI by 7.63% over the last quarter.
CSMIX - Columbia Small Cap Value Fund I holds 844K shares representing 2.66% ownership of the company. In it's prior filing, the firm reported owning 861K shares, representing a decrease of 1.95%. The firm decreased its portfolio allocation in AAOI by 8.13% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 829K shares representing 2.61% ownership of the company. No change in the last quarter.
Kennedy Capital Management holds 816K shares representing 2.57% ownership of the company. In it's prior filing, the firm reported owning 695K shares, representing an increase of 14.89%. The firm increased its portfolio allocation in AAOI by 43.11% over the last quarter.
Royce & Associates holds 697K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 402K shares, representing an increase of 42.36%. The firm increased its portfolio allocation in AAOI by 93.23% over the last quarter.
Applied Optoelectronics Background Information
(This description is provided by the company.)
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
Additional reading:
APPLIED OPTOELECTRONICS, INC. 2023 EQUITY INDUCEMENT PLAN
Applied Optoelectronics Reports Second Quarter 2023 Results
Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan
Statement of Work #2 – Design and Assembly
THIRD AMENDMENT TO LEASE
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 4, 2023, B. Riley Securities upgraded their outlook for Applied Optoelectronics (NASDAQ:AAOI) from Neutral to Buy . Average portfolio weight of all funds dedicated to AAOI is 0.05%, an increase of 15.01%. The put/call ratio of AAOI is 0.24, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, B. Riley Securities upgraded their outlook for Applied Optoelectronics (NASDAQ:AAOI) from Neutral to Buy . Average portfolio weight of all funds dedicated to AAOI is 0.05%, an increase of 15.01%. The put/call ratio of AAOI is 0.24, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, B. Riley Securities upgraded their outlook for Applied Optoelectronics (NASDAQ:AAOI) from Neutral to Buy . Average portfolio weight of all funds dedicated to AAOI is 0.05%, an increase of 15.01%. The put/call ratio of AAOI is 0.24, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, B. Riley Securities upgraded their outlook for Applied Optoelectronics (NASDAQ:AAOI) from Neutral to Buy . Average portfolio weight of all funds dedicated to AAOI is 0.05%, an increase of 15.01%. The put/call ratio of AAOI is 0.24, indicating a bullish outlook.
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4763d509-a4ee-4798-ada7-af38acb4cb6a
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9556.0
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2023-08-04 00:00:00 UTC
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Why Applied Optoelectronics Stock Soared 40% Today
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AAOI
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https://www.nasdaq.com/articles/why-applied-optoelectronics-stock-soared-40-today
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nan
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nan
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What happened
Shares of communications equipment company Applied Optoelectronics (NASDAQ: AAOI), which builds lasers and other subcomponents for fiber-optic networking, leapt 40.1% through 10:10 a.m. ET this morning after beating earnings expectations last night.
Analysts weren't overly optimistic about Applied Optoelectronics heading into Q2 results, predicting the company would lose $0.28 per share on sales of only $45.4 million for the quarter. The company easily cleared those low bars, however, delivering a smaller-than-expected loss of $0.21 per share, and greater-than-expected revenue $52.3 million.
So what
Still, the news wasn't great. Although revenue exceeded analyst expectations, it still declined 20.5% year over year. Granted, Applied Optoelectronics succeeded in improving its gross profit margin by 250 basis points, to 19%. But the company's operating profit margin deteriorated dramatically, falling nearly 14 full percentage points to negative 38.5%, as falling revenue struggled to keep up with rising operating costs.
Ultimately, Applied Optoelectronics ended up with a $0.57 per share GAAP loss on the bottom line -- 10% worse than a year ago. (The $0.21 per share loss that investors seem so pleased with today was a non-GAAP number.)
Now what
Given the size of Applied Optoelectronics' real losses in Q2, though, what explains investors' sudden enthusiasm for the stock? It isn't just that they're happy the results were slightly less dismal than had been predicted, is it?
Actually, no. It isn't.
The real reason investors seem to be betting on Applied Optoelectronics today isn't the bad numbers management reported for Q2, but the much better numbers management thinks it can deliver in Q3. Turning to guidance, Applied Optoelectronics said it's expecting a sharp rebound in sales this coming quarter -- to $60 million-$66 million. That's a whole lot better than the $48.4 million that analysts have been forecasting for Q3.
And even better, Applied Optoelectronics says that while it might lose as much as $0.06 per share (non-GAAP) this quarter, there's a slim chance it will eke out as much as a $0.01 per share profit.
Granted, a $0.01 per share GAAP profit would be better. But beggars can't be choosers. If Applied Optoelectronics can produce any kind of profit at all in Q3, it might be enough to keep this momentum going.
10 stocks we like better than Applied Optoelectronics
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of communications equipment company Applied Optoelectronics (NASDAQ: AAOI), which builds lasers and other subcomponents for fiber-optic networking, leapt 40.1% through 10:10 a.m. Analysts weren't overly optimistic about Applied Optoelectronics heading into Q2 results, predicting the company would lose $0.28 per share on sales of only $45.4 million for the quarter. Ultimately, Applied Optoelectronics ended up with a $0.57 per share GAAP loss on the bottom line -- 10% worse than a year ago.
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What happened Shares of communications equipment company Applied Optoelectronics (NASDAQ: AAOI), which builds lasers and other subcomponents for fiber-optic networking, leapt 40.1% through 10:10 a.m. Analysts weren't overly optimistic about Applied Optoelectronics heading into Q2 results, predicting the company would lose $0.28 per share on sales of only $45.4 million for the quarter. But the company's operating profit margin deteriorated dramatically, falling nearly 14 full percentage points to negative 38.5%, as falling revenue struggled to keep up with rising operating costs.
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What happened Shares of communications equipment company Applied Optoelectronics (NASDAQ: AAOI), which builds lasers and other subcomponents for fiber-optic networking, leapt 40.1% through 10:10 a.m. Analysts weren't overly optimistic about Applied Optoelectronics heading into Q2 results, predicting the company would lose $0.28 per share on sales of only $45.4 million for the quarter. 10 stocks we like better than Applied Optoelectronics When our analyst team has a stock tip, it can pay to listen.
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What happened Shares of communications equipment company Applied Optoelectronics (NASDAQ: AAOI), which builds lasers and other subcomponents for fiber-optic networking, leapt 40.1% through 10:10 a.m. Analysts weren't overly optimistic about Applied Optoelectronics heading into Q2 results, predicting the company would lose $0.28 per share on sales of only $45.4 million for the quarter. (The $0.21 per share loss that investors seem so pleased with today was a non-GAAP number.)
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19d71952-dc7b-401b-9724-e9de04f9de40
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9557.0
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2023-08-04 00:00:00 UTC
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Technology Sector Update for 08/04/2023: USM, TDS, AMZN, AAPL, AAOI
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-08-04-2023%3A-usm-tds-amzn-aapl-aaoi
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nan
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nan
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Tech stocks were lower late Friday, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.3% and the Philadelphia Semiconductor index down 0.5%.
In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular. Telephone and Data Systems owned 83% of wireless carrier at the end of Q2.
Amazon.com (AMZN) shares rose 9% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business.
Apple (AAPL) was shedding 4.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year.
Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral. Tech stocks were lower late Friday, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.3% and the Philadelphia Semiconductor index down 0.5%. Amazon.com (AMZN) shares rose 9% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business.
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Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral. In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular. Telephone and Data Systems owned 83% of wireless carrier at the end of Q2.
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Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral. In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral. Tech stocks were lower late Friday, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.3% and the Philadelphia Semiconductor index down 0.5%. In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular.
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650cf17b-f321-4364-88bd-6ee8f6235339
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9558.0
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2023-08-03 00:00:00 UTC
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Applied Optoelectronics (AAOI) Reports Q2 Loss, Lags Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q2-loss-lags-revenue-estimates-0
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nan
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nan
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.18 per share when it actually produced a loss of $0.25, delivering a surprise of -38.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $41.62 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 8.40%. This compares to year-ago revenues of $52.3 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have added about 291% since the beginning of the year versus the S&P 500's gain of 17.6%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.24 on $48.43 million in revenues for the coming quarter and -$0.95 on $201.8 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
KULR Technology Group, Inc. (KULR), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on August 14.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
KULR Technology Group, Inc.'s revenues are expected to be $1.95 million, up 230.5% from the year-ago quarter.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.28. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.28. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $41.62 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 8.40%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.28. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $41.62 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 8.40%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.28. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. While Applied Optoelectronics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
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c213aa49-166f-4b69-b3a7-ca589c259eea
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9559.0
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2023-08-03 00:00:00 UTC
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Guru Fundamental Report for AAOI
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AAOI
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aaoi
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nan
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nan
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap growth stock in the Electronic Instr. & Controls industry. The rating using this strategy is 66% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
DEFINE THE UNIVERSE: PASS
TWELVE MINUS ONE MOMENTUM: PASS
RETURN CONSISTENCY NEUTRAL
SEASONALITY NEUTRAL
Detailed Analysis of APPLIED OPTOELECTRONICS INC
AAOI Guru Analysis
AAOI Fundamental Analysis
More Information on Wesley Gray
Wesley Gray Portfolio
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap growth stock in the Electronic Instr.
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Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Wesley Gray Wesley Gray Portfolio About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System".
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22d4c4da-22d3-4460-9bdc-6265ee2fc750
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9560.0
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2023-07-18 00:00:00 UTC
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Tuesday Sector Laggards: Semiconductors, Advertising Stocks
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AAOI
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https://www.nasdaq.com/articles/tuesday-sector-laggards%3A-semiconductors-advertising-stocks
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nan
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nan
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In trading on Tuesday, semiconductors shares were relative laggards, down on the day by about 0.6%. Helping drag down the group were shares of Applied Optoelectronics, down about 10.3% and shares of Credo Technology Group Holding down about 6.2% on the day.
Also lagging the market Tuesday are advertising shares, down on the day by about 0.1% as a group, led down by The Trade Desk, trading lower by about 3.8% and National Cinemedia, trading lower by about 3.1%.
VIDEO: Tuesday Sector Laggards: Semiconductors, Advertising Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, semiconductors shares were relative laggards, down on the day by about 0.6%. Helping drag down the group were shares of Applied Optoelectronics, down about 10.3% and shares of Credo Technology Group Holding down about 6.2% on the day. VIDEO: Tuesday Sector Laggards: Semiconductors, Advertising Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, semiconductors shares were relative laggards, down on the day by about 0.6%. Also lagging the market Tuesday are advertising shares, down on the day by about 0.1% as a group, led down by The Trade Desk, trading lower by about 3.8% and National Cinemedia, trading lower by about 3.1%. VIDEO: Tuesday Sector Laggards: Semiconductors, Advertising Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Helping drag down the group were shares of Applied Optoelectronics, down about 10.3% and shares of Credo Technology Group Holding down about 6.2% on the day. Also lagging the market Tuesday are advertising shares, down on the day by about 0.1% as a group, led down by The Trade Desk, trading lower by about 3.8% and National Cinemedia, trading lower by about 3.1%. VIDEO: Tuesday Sector Laggards: Semiconductors, Advertising Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, semiconductors shares were relative laggards, down on the day by about 0.6%. Helping drag down the group were shares of Applied Optoelectronics, down about 10.3% and shares of Credo Technology Group Holding down about 6.2% on the day. Also lagging the market Tuesday are advertising shares, down on the day by about 0.1% as a group, led down by The Trade Desk, trading lower by about 3.8% and National Cinemedia, trading lower by about 3.1%.
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1272b07e-540f-4b0f-b787-019d151669ab
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9561.0
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2023-07-17 00:00:00 UTC
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Is the Microsoft Deal Driving Applied Optoelectronics 300% Gain?
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AAOI
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https://www.nasdaq.com/articles/is-the-microsoft-deal-driving-applied-optoelectronics-300-gain
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nan
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nan
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It’s highly unlikely you’ve heard of Applied Optoelectronics Inc. (NASDAQ: AAOI) until maybe recently, as shares soared more than 300% on its new supply agreement with Microsoft Co. (NASDAQ: MSFT). The company is a vertically integrated optical networking product and laser manufacturer for datacenter, cable broadband and telecom customers.
Incidentally, the company didn't have a press release announcing the deal, as it was quietly disclosed in an 8-K filing on June 22, 2023.
There were no financial details. Applied shares sold off nearly 30% after the news for the next two days. Strangely, shares started to recover and build momentum for the next 15 trading days reaching a high of $11.48 on July 13, 2023. The stock has a small float of 27.5 million shares and a 19.5% short interest which fueled a short squeeze.
Was Microsoft Deal Really the Driver?
Investors credit the Microsoft contract for the 300% rise after the "news." However, could there be something else driving shares higher? The company didn't put out a press release or announce the deal, and no financial terms were disclosed in the 8-K. Incidentally, Microsoft had already been a customer for Applied as it inked a three-year manufacturing agreement for certain lasers to be manufactured under Microsoft's specifications on December 16, 2022, good through December 30, 2025.
In fact, Microsoft had already been a customer as far back as 2017, along with Amazon.com Inc. (NASDAQ: AMZN) and Meta Platforms Inc. (NASDAQ: META) Facebook supplying products for their data centers. Back then, Amazon accounted for more than 50% of Applied revenues in 2017 before they got dumped by Amazon.
Lasers and Datacenters
Was the new contract a revision of the previous contract extended for five years? As for the products, Microsoft could be ordering lasers for its data centers. Diode lasers are the key component of optical fiber, enabling large amounts of data to travel long distances instantaneously.
Data centers are prime customers for lasers and components, using them for data storage and processing. Could the new contract be an upgrade due to the overwhelming data traffic generated by its partnership with ChatGPT developer Open.ai? Could artificial intelligence mania be driving the need for more lasers to be manufactured?
Selling the Chinese Transceiver Facilities
On Sept. 22, 2022, Applied Optical announced it had entered an agreement to sell its Chinese manufacturing facilities and assets related to its transceiver business to Yuhen Optoelectronics Technology for $150 million. The deal is subject to regulatory approvals and is expected to be completed in the second half of 2023.
Applied's founder Dr. Thompson Li commented, "After careful consideration, we concluded that it is in the best interest of the company and our shareholders for AOI to exit the transceiver market and focus our resources on our CATV business and manufacturing lasers and laser components for the data center, CATV, telecom, and FTTH markets.
Further, we believe that this transaction opens up new opportunities for customer expansion with our existing data center laser business, which has a large addressable market." Most funds will be reinvested in its CATV business and new laser-related products.
Applied Optoelectronics analyst ratings and price targets are at MarketBeat.
Weekly Breakout Short-Squeeze
The weekly candlestick chart on AAOI illustrates the trading range between $1.60 and $3.90 since September 2022. AAOI broke out on huge volume up to $5.67 heading into the Microsoft deal disclosure. This caused a sell-the-news initial reaction, but buying resumed the following three weeks sending shares up to $11.48 by mid-July 2023.
Much of the run-up has to be credited to a short squeeze with a 19.77% short interest on a 27.5 million share float. The weekly relative strength index (RSI) momentum oscillation surged from the 35-band up to the 86-band in extremely overbought territory as shares had a 14% reversion from their peak.
The weekly 20-period exponential moving average (EMA) rises at $3.93, followed by the 50-period MA at $2.76. Pullback support levels are at $5.71, $4.99, $4.50 and $3.90.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It’s highly unlikely you’ve heard of Applied Optoelectronics Inc. (NASDAQ: AAOI) until maybe recently, as shares soared more than 300% on its new supply agreement with Microsoft Co. (NASDAQ: MSFT). Weekly Breakout Short-Squeeze The weekly candlestick chart on AAOI illustrates the trading range between $1.60 and $3.90 since September 2022. AAOI broke out on huge volume up to $5.67 heading into the Microsoft deal disclosure.
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It’s highly unlikely you’ve heard of Applied Optoelectronics Inc. (NASDAQ: AAOI) until maybe recently, as shares soared more than 300% on its new supply agreement with Microsoft Co. (NASDAQ: MSFT). Weekly Breakout Short-Squeeze The weekly candlestick chart on AAOI illustrates the trading range between $1.60 and $3.90 since September 2022. AAOI broke out on huge volume up to $5.67 heading into the Microsoft deal disclosure.
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It’s highly unlikely you’ve heard of Applied Optoelectronics Inc. (NASDAQ: AAOI) until maybe recently, as shares soared more than 300% on its new supply agreement with Microsoft Co. (NASDAQ: MSFT). Weekly Breakout Short-Squeeze The weekly candlestick chart on AAOI illustrates the trading range between $1.60 and $3.90 since September 2022. AAOI broke out on huge volume up to $5.67 heading into the Microsoft deal disclosure.
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It’s highly unlikely you’ve heard of Applied Optoelectronics Inc. (NASDAQ: AAOI) until maybe recently, as shares soared more than 300% on its new supply agreement with Microsoft Co. (NASDAQ: MSFT). Weekly Breakout Short-Squeeze The weekly candlestick chart on AAOI illustrates the trading range between $1.60 and $3.90 since September 2022. AAOI broke out on huge volume up to $5.67 heading into the Microsoft deal disclosure.
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14b74c26-477a-4492-916e-d01c99619779
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9562.0
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2023-07-06 00:00:00 UTC
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Applied Optoelectronics (AAOI) Surges 15.8%: Is This an Indication of Further Gains?
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-surges-15.8%3A-is-this-an-indication-of-further-gains
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nan
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nan
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Applied Optoelectronics (AAOI) shares ended the last trading session 15.8% higher at $7.03. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 123.2% gain over the past four weeks.
Applied Optoelectronics extended its rally, driven by its robust optical networking technology portfolio which continues to strengthen its presence in the cable TV (CATV) market. Additionally, growing demand for the company’s 100G products is benefiting its datacenter business, which remains a positive.
This maker of fiber optic products used by cable TV providers is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $45.43 million, down 13.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Applied Optoelectronics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AAOI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Applied Optoelectronics is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Cirrus Logic (CRUS), finished the last trading session 2.3% lower at $79.33. CRUS has returned 5% over the past month.
For Cirrus Logic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.41. This represents a change of -63.4% from what the company reported a year ago. Cirrus Logic currently has a Zacks Rank of #4 (Sell).
7 Best Stocks for the Next 30 Days
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand-picked 7 your immediate attention.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares ended the last trading session 15.8% higher at $7.03. So, make sure to keep an eye on AAOI going forward to see if this recent jump can turn into more strength down the road. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) shares ended the last trading session 15.8% higher at $7.03. So, make sure to keep an eye on AAOI going forward to see if this recent jump can turn into more strength down the road.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) shares ended the last trading session 15.8% higher at $7.03. So, make sure to keep an eye on AAOI going forward to see if this recent jump can turn into more strength down the road.
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Applied Optoelectronics (AAOI) shares ended the last trading session 15.8% higher at $7.03. So, make sure to keep an eye on AAOI going forward to see if this recent jump can turn into more strength down the road. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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f8deca23-f14c-40b8-90b5-5ceca1dd75e9
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9563.0
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2023-07-01 00:00:00 UTC
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AAOI Quantitative Stock Analysis
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AAOI
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https://www.nasdaq.com/articles/aaoi-quantitative-stock-analysis
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nan
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nan
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating using this strategy is 45% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: FAIL
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: FAIL
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: FAIL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: FAIL
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of APPLIED OPTOELECTRONICS INC
AAOI Guru Analysis
AAOI Fundamental Analysis
More Information on Motley Fool
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI). Of the 22 guru strategies we follow, AAOI rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. APPLIED OPTOELECTRONICS INC (AAOI) is a small-cap value stock in the Electronic Instr.
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Of the 22 guru strategies we follow, AAOI rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Motley Fool Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Of the 22 guru strategies we follow, AAOI rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Motley Fool Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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Of the 22 guru strategies we follow, AAOI rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. Detailed Analysis of APPLIED OPTOELECTRONICS INC AAOI Guru Analysis AAOI Fundamental Analysis More Information on Motley Fool Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. Below is Validea's guru fundamental report for APPLIED OPTOELECTRONICS INC (AAOI).
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328c5330-d0dd-4e95-b425-fe51979a116a
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9564.0
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2023-06-22 00:00:00 UTC
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Technology Sector Update for 06/22/2023: ACN, MEI, AAOI, MSFT, XLK, SOXX
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-06-22-2023%3A-acn-mei-aaoi-msft-xlk-soxx
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nan
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nan
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Technology stocks were leaning lower premarket Thursday with the Technology Select Sector SPDR Fund (XLK) down 0.2% and the iShares Semiconductor ETF (SOXX) declining by 0.6%.
Accenture (ACN) was slipping past 5% after saying it expects fiscal Q4 revenue of $15.75 billion to $16.35 billion. Analysts surveyed by Capital IQ are looking for $16.27 billion. The company said revenue growth for the full fiscal year is now projected to be 8% to 9% in local currency. That compares with the prior outlook of 8% to 10%.
Methode Electronics (MEI) was down more than 1% after it reported fiscal Q4 non-GAAP earnings of $0.21 per diluted share, down from $0.43 a year earlier. Three analysts polled by Capital IQ expected normalized EPS of $0.38.
Applied Optoelectronics (AAOI) was gaining over 13% in value after saying it signed an agreement with Microsoft (MSFT) to supply design and assembly services of goods.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) was gaining over 13% in value after saying it signed an agreement with Microsoft (MSFT) to supply design and assembly services of goods. The company said revenue growth for the full fiscal year is now projected to be 8% to 9% in local currency. Methode Electronics (MEI) was down more than 1% after it reported fiscal Q4 non-GAAP earnings of $0.21 per diluted share, down from $0.43 a year earlier.
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Applied Optoelectronics (AAOI) was gaining over 13% in value after saying it signed an agreement with Microsoft (MSFT) to supply design and assembly services of goods. Accenture (ACN) was slipping past 5% after saying it expects fiscal Q4 revenue of $15.75 billion to $16.35 billion. The company said revenue growth for the full fiscal year is now projected to be 8% to 9% in local currency.
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Applied Optoelectronics (AAOI) was gaining over 13% in value after saying it signed an agreement with Microsoft (MSFT) to supply design and assembly services of goods. Technology stocks were leaning lower premarket Thursday with the Technology Select Sector SPDR Fund (XLK) down 0.2% and the iShares Semiconductor ETF (SOXX) declining by 0.6%. Accenture (ACN) was slipping past 5% after saying it expects fiscal Q4 revenue of $15.75 billion to $16.35 billion.
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Applied Optoelectronics (AAOI) was gaining over 13% in value after saying it signed an agreement with Microsoft (MSFT) to supply design and assembly services of goods. Technology stocks were leaning lower premarket Thursday with the Technology Select Sector SPDR Fund (XLK) down 0.2% and the iShares Semiconductor ETF (SOXX) declining by 0.6%. Accenture (ACN) was slipping past 5% after saying it expects fiscal Q4 revenue of $15.75 billion to $16.35 billion.
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710b93ca-c72d-4106-96df-53069bfcfcae
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9565.0
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2023-06-22 00:00:00 UTC
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Pre-market Movers: PIXY, ROOT, CDMO, ALVR, KWE…
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AAOI
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https://www.nasdaq.com/articles/pre-market-movers%3A-pixy-root-cdmo-alvr-kwe...
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nan
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nan
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(RTTNews) - The following are some of the stocks making big moves in Thursday's pre-market trading (as of 07.25 A.M. ET).
In the Green ShiftPixy, Inc. (PIXY) is up over 92% at $2.54. Root, Inc. (ROOT) is up over 33% at $12.84. KWESST Micro Systems Inc. (KWE) is up over 14% at $3.79. FingerMotion, Inc. (FNGR) is up over 10% at $3.20. Ault Disruptive Technologies Corporation (ADRT) is up over 9% at $11.64. Beamr Imaging Ltd. (BMR) is up over 7% at $2.98. Patterson Companies, Inc. (PDCO) is up over 5% at $34.30. LiveWire Group, Inc. (LVWR) is up over 5% at $11.72. Youdao, Inc. (DAO) is up over 5% at $4.97. Applied Optoelectronics, Inc. (AAOI) is up over 5% at $4.40.
In the Red
Avid Bioservices, Inc. (CDMO) is down over 22% at $11.99. AlloVir, Inc. (ALVR) is down over 22% at $3.80. U Power Limited (UCAR) is down over 13% at $7.20. Asset Entities Inc. (ASST) is down over 11% at $2.10. Ramaco Resources, Inc. (METC) is down over 10% at $8.62. Genfit S.A. (GNFT) is down over 10% at $4.19. Spirit AeroSystems Holdings, Inc. (SPR) is down over 7% at $27.33. Algoma Steel Group Inc. (ASTL) is down over 6% at $7.15.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, Inc. (AAOI) is up over 5% at $4.40. (RTTNews) - The following are some of the stocks making big moves in Thursday's pre-market trading (as of 07.25 A.M. KWESST Micro Systems Inc. (KWE) is up over 14% at $3.79.
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Applied Optoelectronics, Inc. (AAOI) is up over 5% at $4.40. (RTTNews) - The following are some of the stocks making big moves in Thursday's pre-market trading (as of 07.25 A.M. Root, Inc. (ROOT) is up over 33% at $12.84.
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Applied Optoelectronics, Inc. (AAOI) is up over 5% at $4.40. Root, Inc. (ROOT) is up over 33% at $12.84. Algoma Steel Group Inc. (ASTL) is down over 6% at $7.15.
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Applied Optoelectronics, Inc. (AAOI) is up over 5% at $4.40. (RTTNews) - The following are some of the stocks making big moves in Thursday's pre-market trading (as of 07.25 A.M. In the Green ShiftPixy, Inc. (PIXY) is up over 92% at $2.54.
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af4ac9ee-9efa-4a05-a469-ce5bae45e5c0
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9566.0
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2023-06-21 00:00:00 UTC
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Wednesday Sector Laggards: Semiconductors, Application Software Stocks
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AAOI
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https://www.nasdaq.com/articles/wednesday-sector-laggards%3A-semiconductors-application-software-stocks
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nan
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nan
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In trading on Wednesday, semiconductors shares were relative laggards, down on the day by about 2%. Helping drag down the group were shares of Applied Optoelectronics, down about 19.9% and shares of GSI Technology down about 10.9% on the day.
Also lagging the market Wednesday are application software shares, down on the day by about 1.7% as a group, led down by Arqit Quantum, trading lower by about 12.6% and D-Wave Quantum, trading lower by about 10.8%.
VIDEO: Wednesday Sector Laggards: Semiconductors, Application Software Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, semiconductors shares were relative laggards, down on the day by about 2%. Also lagging the market Wednesday are application software shares, down on the day by about 1.7% as a group, led down by Arqit Quantum, trading lower by about 12.6% and D-Wave Quantum, trading lower by about 10.8%. VIDEO: Wednesday Sector Laggards: Semiconductors, Application Software Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, semiconductors shares were relative laggards, down on the day by about 2%. Also lagging the market Wednesday are application software shares, down on the day by about 1.7% as a group, led down by Arqit Quantum, trading lower by about 12.6% and D-Wave Quantum, trading lower by about 10.8%. VIDEO: Wednesday Sector Laggards: Semiconductors, Application Software Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, semiconductors shares were relative laggards, down on the day by about 2%. Also lagging the market Wednesday are application software shares, down on the day by about 1.7% as a group, led down by Arqit Quantum, trading lower by about 12.6% and D-Wave Quantum, trading lower by about 10.8%. VIDEO: Wednesday Sector Laggards: Semiconductors, Application Software Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, semiconductors shares were relative laggards, down on the day by about 2%. Helping drag down the group were shares of Applied Optoelectronics, down about 19.9% and shares of GSI Technology down about 10.9% on the day. Also lagging the market Wednesday are application software shares, down on the day by about 1.7% as a group, led down by Arqit Quantum, trading lower by about 12.6% and D-Wave Quantum, trading lower by about 10.8%.
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156dd6e7-812c-4e97-8221-9af7f49265a1
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9567.0
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2023-05-04 00:00:00 UTC
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Applied Optoelectronics (AAOI) Reports Q1 Loss, Misses Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q1-loss-misses-revenue-estimates-0
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nan
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nan
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -38.89%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.30 per share when it actually produced a loss of $0.19, delivering a surprise of 36.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $53.03 million for the quarter ended March 2023, missing the Zacks Consensus Estimate by 1.38%. This compares to year-ago revenues of $52.24 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have lost about 5.3% since the beginning of the year versus the S&P 500's gain of 6.5%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.14 on $59.3 million in revenues for the coming quarter and -$0.48 on $243.84 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
KULR Technology Group, Inc. (KULR), another stock in the same industry, has yet to report results for the quarter ended March 2023.
This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
KULR Technology Group, Inc.'s revenues are expected to be $2.25 million, up 1025% from the year-ago quarter.
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Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.18. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.18. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $53.03 million for the quarter ended March 2023, missing the Zacks Consensus Estimate by 1.38%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.18. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $53.03 million for the quarter ended March 2023, missing the Zacks Consensus Estimate by 1.38%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.18. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report KULR Technology Group, Inc. (KULR) : Free Stock Analysis Report To read this article on Zacks.com click here. The company has topped consensus revenue estimates just once over the last four quarters.
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866de22a-011b-4a0e-8db1-20bcdf25c2c1
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9568.0
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2023-03-27 00:00:00 UTC
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Monday Sector Laggards: Textiles, Semiconductors
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AAOI
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https://www.nasdaq.com/articles/monday-sector-laggards%3A-textiles-semiconductors
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nan
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nan
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In trading on Monday, textiles shares were relative laggards, down on the day by about 1.1%. Helping drag down the group were shares of A.K.A. Brands Holding, off about 10.3% and shares of Plby Group down about 9.3% on the day.
Also lagging the market Monday are semiconductors shares, down on the day by about 1% as a group, led down by Applied Optoelectronics, trading lower by about 22% and Emagin, trading lower by about 7.9%.
VIDEO: Monday Sector Laggards: Textiles, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, textiles shares were relative laggards, down on the day by about 1.1%. Also lagging the market Monday are semiconductors shares, down on the day by about 1% as a group, led down by Applied Optoelectronics, trading lower by about 22% and Emagin, trading lower by about 7.9%. VIDEO: Monday Sector Laggards: Textiles, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, textiles shares were relative laggards, down on the day by about 1.1%. Also lagging the market Monday are semiconductors shares, down on the day by about 1% as a group, led down by Applied Optoelectronics, trading lower by about 22% and Emagin, trading lower by about 7.9%. VIDEO: Monday Sector Laggards: Textiles, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, textiles shares were relative laggards, down on the day by about 1.1%. Also lagging the market Monday are semiconductors shares, down on the day by about 1% as a group, led down by Applied Optoelectronics, trading lower by about 22% and Emagin, trading lower by about 7.9%. VIDEO: Monday Sector Laggards: Textiles, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, textiles shares were relative laggards, down on the day by about 1.1%. Helping drag down the group were shares of A.K.A. Brands Holding, off about 10.3% and shares of Plby Group down about 9.3% on the day.
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2c1a5879-55ac-468d-8726-ec719f70e4ec
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9569.0
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2023-03-17 00:00:00 UTC
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Are Computer and Technology Stocks Lagging Applied Optoelectronics (AAOI) This Year?
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AAOI
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https://www.nasdaq.com/articles/are-computer-and-technology-stocks-lagging-applied-optoelectronics-aaoi-this-year
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Applied Optoelectronics (AAOI) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Optoelectronics is one of 646 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AAOI has gained about 31.2% so far this year. At the same time, Computer and Technology stocks have gained an average of 15.7%. This shows that Applied Optoelectronics is outperforming its peers so far this year.
Allegro MicroSystems, Inc. (ALGM) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 53.3%.
For Allegro MicroSystems, Inc. the consensus EPS estimate for the current year has increased 10.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Applied Optoelectronics is a member of the Electronics - Semiconductors industry, which includes 39 individual companies and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 24.3% so far this year, so AAOI is performing better in this area. Allegro MicroSystems, Inc. is also part of the same industry.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Optoelectronics and Allegro MicroSystems, Inc. as they could maintain their solid performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Has Applied Optoelectronics (AAOI) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. Based on the latest available data, AAOI has gained about 31.2% so far this year.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report To read this article on Zacks.com click here. Has Applied Optoelectronics (AAOI) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report To read this article on Zacks.com click here. Has Applied Optoelectronics (AAOI) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher.
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Has Applied Optoelectronics (AAOI) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. Based on the latest available data, AAOI has gained about 31.2% so far this year.
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0b468043-0bf3-4492-9f13-643a2165d78e
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9570.0
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2023-03-01 00:00:00 UTC
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Is Applied Optoelectronics (AAOI) Stock Outpacing Its Computer and Technology Peers This Year?
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AAOI
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https://www.nasdaq.com/articles/is-applied-optoelectronics-aaoi-stock-outpacing-its-computer-and-technology-peers-this
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Applied Optoelectronics (AAOI) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Optoelectronics is one of 649 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AAOI has returned 48.7% so far this year. In comparison, Computer and Technology companies have returned an average of 9.7%. This means that Applied Optoelectronics is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Allegro MicroSystems, Inc. (ALGM). The stock is up 45.5% year-to-date.
The consensus estimate for Allegro MicroSystems, Inc.'s current year EPS has increased 10.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Applied Optoelectronics belongs to the Electronics - Semiconductors industry, which includes 41 individual stocks and currently sits at #155 in the Zacks Industry Rank. Stocks in this group have gained about 13.6% so far this year, so AAOI is performing better this group in terms of year-to-date returns. Allegro MicroSystems, Inc. is also part of the same industry.
Applied Optoelectronics and Allegro MicroSystems, Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Has Applied Optoelectronics (AAOI) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. Based on the most recent data, AAOI has returned 48.7% so far this year.
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Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report To read this article on Zacks.com click here. Has Applied Optoelectronics (AAOI) been one of those stocks this year?
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report To read this article on Zacks.com click here. Has Applied Optoelectronics (AAOI) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher.
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Has Applied Optoelectronics (AAOI) been one of those stocks this year? Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 35.9% higher. Based on the most recent data, AAOI has returned 48.7% so far this year.
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a5d5a906-8a17-4510-84a9-685aacbcb88c
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9571.0
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2023-03-01 00:00:00 UTC
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Why Fast-paced Mover Applied Optoelectronics (AAOI) Is a Great Choice for Value Investors
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AAOI
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https://www.nasdaq.com/articles/why-fast-paced-mover-applied-optoelectronics-aaoi-is-a-great-choice-for-value-investors
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nan
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nan
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Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Applied Optoelectronics (AAOI) is one of them. Here are the key reasons why this stock is a great candidate.
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 17.6% over the past four weeks positions the stock of this maker of fiber optic products used by cable TV providers well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. AAOI meets this criterion too, as the stock gained 33.8% over the past 12 weeks.
Moreover, the momentum for AAOI is fast paced, as the stock currently has a beta of 1.38. This indicates that the stock moves 38% higher than the market in either direction.
Given this price performance, it is no surprise that AAOI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped AAOI earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, AAOI is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. AAOI is currently trading at 0.37 times its sales. In other words, investors need to pay only 37 cents for each dollar of sales.
So, AAOI appears to have plenty of room to run, and that too at a fast pace.
In addition to AAOI, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
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Click here to sign up for a free trial to the Research Wizard today.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, AAOI is trading at a reasonable valuation. There are several stocks that currently pass through the screen and Applied Optoelectronics (AAOI) is one of them. AAOI meets this criterion too, as the stock gained 33.8% over the past 12 weeks.
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In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped AAOI earn a Zacks Rank #2 (Buy). Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report To read this article on Zacks.com click here. There are several stocks that currently pass through the screen and Applied Optoelectronics (AAOI) is one of them.
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Given this price performance, it is no surprise that AAOI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, AAOI is trading at a reasonable valuation. There are several stocks that currently pass through the screen and Applied Optoelectronics (AAOI) is one of them.
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In addition to AAOI, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. There are several stocks that currently pass through the screen and Applied Optoelectronics (AAOI) is one of them. AAOI meets this criterion too, as the stock gained 33.8% over the past 12 weeks.
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4346e82b-7e21-42fd-b512-b6601fa2b50e
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9572.0
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2023-02-23 00:00:00 UTC
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Applied Optoelectronics (AAOI) Reports Q4 Loss, Tops Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q4-loss-tops-revenue-estimates-0
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nan
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nan
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 36.67%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.29 per share when it actually produced a loss of $0.26, delivering a surprise of 10.34%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $61.58 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $54.41 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have added about 49.2% since the beginning of the year versus the S&P 500's gain of 4%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.27 on $58.65 million in revenues for the coming quarter and -$0.83 on $258.44 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Ambarella (AMBA), has yet to report results for the quarter ended January 2023. The results are expected to be released on February 28.
This video-compression chipmaker is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ambarella's revenues are expected to be $83.04 million, down 8% from the year-ago quarter.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Ambarella, Inc. (AMBA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.30. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.30. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $61.58 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.48%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.30. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report To read this article on Zacks.com click here. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $61.58 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.48%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.30. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report To read this article on Zacks.com click here. The company has topped consensus revenue estimates just once over the last four quarters.
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9fc7e91e-a798-459e-919e-a16f000b47b3
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9573.0
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2023-02-01 00:00:00 UTC
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Wednesday Sector Leaders: Trucking, Semiconductors
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AAOI
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https://www.nasdaq.com/articles/wednesday-sector-leaders%3A-trucking-semiconductors
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nan
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nan
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In trading on Wednesday, trucking shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Old Dominion Freight Line, up about 9.3% and shares of Saia up about 6% on the day.
Also showing relative strength are semiconductors shares, up on the day by about 1.5% as a group, led by Silicon Laboratories, trading higher by about 16.1% and Applied Optoelectronics, trading higher by about 10.2% on Wednesday.
VIDEO: Wednesday Sector Leaders: Trucking, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, trucking shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are semiconductors shares, up on the day by about 1.5% as a group, led by Silicon Laboratories, trading higher by about 16.1% and Applied Optoelectronics, trading higher by about 10.2% on Wednesday. VIDEO: Wednesday Sector Leaders: Trucking, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, trucking shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are semiconductors shares, up on the day by about 1.5% as a group, led by Silicon Laboratories, trading higher by about 16.1% and Applied Optoelectronics, trading higher by about 10.2% on Wednesday. VIDEO: Wednesday Sector Leaders: Trucking, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, trucking shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are semiconductors shares, up on the day by about 1.5% as a group, led by Silicon Laboratories, trading higher by about 16.1% and Applied Optoelectronics, trading higher by about 10.2% on Wednesday. VIDEO: Wednesday Sector Leaders: Trucking, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, trucking shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Old Dominion Freight Line, up about 9.3% and shares of Saia up about 6% on the day. Also showing relative strength are semiconductors shares, up on the day by about 1.5% as a group, led by Silicon Laboratories, trading higher by about 16.1% and Applied Optoelectronics, trading higher by about 10.2% on Wednesday.
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424062fa-fde2-4660-b25b-7e59ee8c5d5f
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9574.0
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2023-01-09 00:00:00 UTC
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Monday Sector Leaders: Semiconductors, Home Furnishings & Improvement Stocks
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AAOI
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-semiconductors-home-furnishings-improvement-stocks
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nan
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nan
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 3.8%. Leading the group were shares of Applied Optoelectronics, up about 18.8% and shares of SiTime up about 9% on the day.
Also showing relative strength are home furnishings & improvement shares, up on the day by about 3.7% as a group, led by Bed, Bath & Beyond, trading higher by about 34.7% and Virco Manufacturing, trading higher by about 5.7% on Monday.
VIDEO: Monday Sector Leaders: Semiconductors, Home Furnishings & Improvement Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 3.8%. Also showing relative strength are home furnishings & improvement shares, up on the day by about 3.7% as a group, led by Bed, Bath & Beyond, trading higher by about 34.7% and Virco Manufacturing, trading higher by about 5.7% on Monday. VIDEO: Monday Sector Leaders: Semiconductors, Home Furnishings & Improvement Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 3.8%. Also showing relative strength are home furnishings & improvement shares, up on the day by about 3.7% as a group, led by Bed, Bath & Beyond, trading higher by about 34.7% and Virco Manufacturing, trading higher by about 5.7% on Monday. VIDEO: Monday Sector Leaders: Semiconductors, Home Furnishings & Improvement Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 3.8%. Also showing relative strength are home furnishings & improvement shares, up on the day by about 3.7% as a group, led by Bed, Bath & Beyond, trading higher by about 34.7% and Virco Manufacturing, trading higher by about 5.7% on Monday. VIDEO: Monday Sector Leaders: Semiconductors, Home Furnishings & Improvement Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, semiconductors shares were relative leaders, up on the day by about 3.8%. Leading the group were shares of Applied Optoelectronics, up about 18.8% and shares of SiTime up about 9% on the day. Also showing relative strength are home furnishings & improvement shares, up on the day by about 3.7% as a group, led by Bed, Bath & Beyond, trading higher by about 34.7% and Virco Manufacturing, trading higher by about 5.7% on Monday.
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8f2c0519-947d-4d5d-a3e3-cf0cc158c560
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9575.0
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2022-11-03 00:00:00 UTC
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Applied Optoelectronics (AAOI) Reports Q3 Loss, Lags Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q3-loss-lags-revenue-estimates
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nan
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nan
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10.34%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.30 per share when it actually produced a loss of $0.28, delivering a surprise of 6.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $56.69 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 3.45%. This compares to year-ago revenues of $53.27 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have lost about 49.6% since the beginning of the year versus the S&P 500's decline of -21.1%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.25 on $62.47 million in revenues for the coming quarter and -$1.11 on $225.74 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Navitas Semiconductor Corporation (NVTS), another stock in the same industry, has yet to report results for the quarter ended September 2022. The results are expected to be released on November 9.
This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +82.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Navitas Semiconductor Corporation's revenues are expected to be $9.97 million, up 77.2% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Navitas Semiconductor Corporation (NVTS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.29. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.29. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $56.69 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 3.45%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.29. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $56.69 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 3.45%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.29. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report The company has topped consensus revenue estimates just once over the last four quarters.
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ac7f5c69-4d70-4e06-82f5-874ac1f86416
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9576.0
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2022-09-16 00:00:00 UTC
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Technology Sector Update for 09/16/2022: MAXR,MAXR.TO,VSAT,AAOI
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-09-16-2022%3A-maxrmaxr.tovsataaoi
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nan
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nan
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Technology stocks were declining on Friday, with the SPDR Technology Select Sector ETF (XLK) falling 1.2% while the Philadelphia Semiconductor Index was sliding 0.6% this afternoon.
In company news, Maxar Technologies (MAXR) declined 5.5% after the aerospace equipment company last Thursday said it has begun the search for a new chief financial officer to succeed incumbent CFO Biggs Porter, who plans to retire in 2023. Porter will remain in his current role until the new CFO is named and then assist with the transition as a consultant until March 2024, it said.
ViaSat (VSAT) was falling 4.2%. The satellite services company Friday said the UK government has cleared its proposed $7.3 billion acquisition of privately held Inmarsat, concluding the deal does not pose a risk to national security.
Applied Optoelectronics (AAOI) shares surged more than 45% after the fiber-optic networking company overnight disclosed plans to sell its manufacturing facilities in China and selected parts of its transceiver business to Yuhan Optoelectronic Technology in Shanghai for $150 million. Applied will use a portion of the sale proceeds to acquire a 10% equity stake in Yuhan Optoelectric, the company said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares surged more than 45% after the fiber-optic networking company overnight disclosed plans to sell its manufacturing facilities in China and selected parts of its transceiver business to Yuhan Optoelectronic Technology in Shanghai for $150 million. Porter will remain in his current role until the new CFO is named and then assist with the transition as a consultant until March 2024, it said. The satellite services company Friday said the UK government has cleared its proposed $7.3 billion acquisition of privately held Inmarsat, concluding the deal does not pose a risk to national security.
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Applied Optoelectronics (AAOI) shares surged more than 45% after the fiber-optic networking company overnight disclosed plans to sell its manufacturing facilities in China and selected parts of its transceiver business to Yuhan Optoelectronic Technology in Shanghai for $150 million. Technology stocks were declining on Friday, with the SPDR Technology Select Sector ETF (XLK) falling 1.2% while the Philadelphia Semiconductor Index was sliding 0.6% this afternoon. The satellite services company Friday said the UK government has cleared its proposed $7.3 billion acquisition of privately held Inmarsat, concluding the deal does not pose a risk to national security.
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Applied Optoelectronics (AAOI) shares surged more than 45% after the fiber-optic networking company overnight disclosed plans to sell its manufacturing facilities in China and selected parts of its transceiver business to Yuhan Optoelectronic Technology in Shanghai for $150 million. Technology stocks were declining on Friday, with the SPDR Technology Select Sector ETF (XLK) falling 1.2% while the Philadelphia Semiconductor Index was sliding 0.6% this afternoon. In company news, Maxar Technologies (MAXR) declined 5.5% after the aerospace equipment company last Thursday said it has begun the search for a new chief financial officer to succeed incumbent CFO Biggs Porter, who plans to retire in 2023.
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Applied Optoelectronics (AAOI) shares surged more than 45% after the fiber-optic networking company overnight disclosed plans to sell its manufacturing facilities in China and selected parts of its transceiver business to Yuhan Optoelectronic Technology in Shanghai for $150 million. Technology stocks were declining on Friday, with the SPDR Technology Select Sector ETF (XLK) falling 1.2% while the Philadelphia Semiconductor Index was sliding 0.6% this afternoon. In company news, Maxar Technologies (MAXR) declined 5.5% after the aerospace equipment company last Thursday said it has begun the search for a new chief financial officer to succeed incumbent CFO Biggs Porter, who plans to retire in 2023.
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6853b7ae-2a60-4d8f-9fab-b4eedf4f6e44
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9577.0
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2022-09-16 00:00:00 UTC
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Technology Sector Update for 09/16/2022: UBER, AAOI, NCR, XLK, SOXX
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AAOI
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https://www.nasdaq.com/articles/technology-sector-update-for-09-16-2022%3A-uber-aaoi-ncr-xlk-soxx
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nan
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nan
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Technology stocks were retreating premarket Friday, with the Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index ETF (SOXX) down more than 1%.
Uber Technologies (UBER) shares were slipping past 5% after it used a tweet to confirm reports that it is "responding" to a cybersecurity incident and has notified law enforcement.
Applied Optoelectronics (AAOI) shares were up more than 23% after saying it agreed to sell its manufacturing facilities in China and certain assets related to its transceiver business to Yuhan Optoelectronic Technology (Shanghai) for $150 million.
NCR (NCR) said its board has approved a plan to separate into two independent, publicly traded companies, with one focused on digital commerce and the other on ATMs. NCR stock was down nearly 19%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) shares were up more than 23% after saying it agreed to sell its manufacturing facilities in China and certain assets related to its transceiver business to Yuhan Optoelectronic Technology (Shanghai) for $150 million. Technology stocks were retreating premarket Friday, with the Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index ETF (SOXX) down more than 1%. Uber Technologies (UBER) shares were slipping past 5% after it used a tweet to confirm reports that it is "responding" to a cybersecurity incident and has notified law enforcement.
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Applied Optoelectronics (AAOI) shares were up more than 23% after saying it agreed to sell its manufacturing facilities in China and certain assets related to its transceiver business to Yuhan Optoelectronic Technology (Shanghai) for $150 million. Technology stocks were retreating premarket Friday, with the Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index ETF (SOXX) down more than 1%. Uber Technologies (UBER) shares were slipping past 5% after it used a tweet to confirm reports that it is "responding" to a cybersecurity incident and has notified law enforcement.
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Applied Optoelectronics (AAOI) shares were up more than 23% after saying it agreed to sell its manufacturing facilities in China and certain assets related to its transceiver business to Yuhan Optoelectronic Technology (Shanghai) for $150 million. Technology stocks were retreating premarket Friday, with the Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index ETF (SOXX) down more than 1%. NCR (NCR) said its board has approved a plan to separate into two independent, publicly traded companies, with one focused on digital commerce and the other on ATMs.
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Applied Optoelectronics (AAOI) shares were up more than 23% after saying it agreed to sell its manufacturing facilities in China and certain assets related to its transceiver business to Yuhan Optoelectronic Technology (Shanghai) for $150 million. Uber Technologies (UBER) shares were slipping past 5% after it used a tweet to confirm reports that it is "responding" to a cybersecurity incident and has notified law enforcement. NCR stock was down nearly 19%.
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5e07024a-972b-44e3-b4de-765aff9e9af9
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9578.0
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2022-09-16 00:00:00 UTC
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Pre-Market Most Active for Sep 16, 2022 : SQQQ, TQQQ, AAOI, FDX, QQQ, TSLA, AAPL, NIO, UBER, NOK, AMPX, CCL
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AAOI
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-16-2022-%3A-sqqq-tqqq-aaoi-fdx-qqq-tsla-aapl-nio-uber-nok
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -130.28 to 11,797.21. The total Pre-Market volume is currently 27,927,254 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +1.74 at $49.88, with 4,371,786 shares traded. This represents a 77.19% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.89 at $24.20, with 3,903,991 shares traded. This represents a 13.51% increase from its 52 Week Low.
Applied Optoelectronics, Inc. (AAOI) is +0.6101 at $3.11, with 1,446,023 shares traded. As reported in the last short interest update the days to cover for AAOI is 17.104671; this calculation is based on the average trading volume of the stock.
FedEx Corporation (FDX) is -41.75 at $163.12, with 1,187,774 shares traded.FDX is scheduled to provide an earnings report on 9/22/2022, for the fiscal quarter ending Aug2022. The consensus earnings per share forecast is 5.06 per share, which represents a 437 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -3.44 at $287.66, with 1,073,128 shares traded. This represents a 6.83% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -3.65 at $300.10, with 606,218 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.91. TSLA's current last sale is 92.39% of the target price of $324.833.
Apple Inc. (AAPL) is -1.76 at $150.61, with 591,297 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is -0.23 at $21.28, with 491,264 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Uber Technologies, Inc. (UBER) is -1.22 at $31.91, with 441,721 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Nokia Corporation (NOK) is -0.13 at $4.74, with 414,937 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
Amprius Technologies, Inc. (AMPX) is +8.4001 at $18.40, with 370,456 shares traded.
Carnival Corporation (CCL) is -0.25 at $10.67, with 367,020 shares traded. CCL's current last sale is 79.04% of the target price of $13.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported in the last short interest update the days to cover for AAOI is 17.104671; this calculation is based on the average trading volume of the stock. Applied Optoelectronics, Inc. (AAOI) is +0.6101 at $3.11, with 1,446,023 shares traded. FedEx Corporation (FDX) is -41.75 at $163.12, with 1,187,774 shares traded.FDX is scheduled to provide an earnings report on 9/22/2022, for the fiscal quarter ending Aug2022.
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Applied Optoelectronics, Inc. (AAOI) is +0.6101 at $3.11, with 1,446,023 shares traded. As reported in the last short interest update the days to cover for AAOI is 17.104671; this calculation is based on the average trading volume of the stock. The total Pre-Market volume is currently 27,927,254 shares traded.
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Applied Optoelectronics, Inc. (AAOI) is +0.6101 at $3.11, with 1,446,023 shares traded. As reported in the last short interest update the days to cover for AAOI is 17.104671; this calculation is based on the average trading volume of the stock. The total Pre-Market volume is currently 27,927,254 shares traded.
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As reported in the last short interest update the days to cover for AAOI is 17.104671; this calculation is based on the average trading volume of the stock. Applied Optoelectronics, Inc. (AAOI) is +0.6101 at $3.11, with 1,446,023 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022.
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dedc821c-acb0-4cb1-895c-23d000ff151d
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9579.0
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2022-08-12 00:00:00 UTC
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Friday Sector Leaders: Rubber & Plastics, Semiconductors
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AAOI
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https://www.nasdaq.com/articles/friday-sector-leaders%3A-rubber-plastics-semiconductors
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nan
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nan
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In trading on Friday, rubber & plastics shares were relative leaders, up on the day by about 3.8%. Leading the group were shares of Latham Group, up about 17.2% and shares of Danimer Scientific up about 15.8% on the day.
Also showing relative strength are semiconductors shares, up on the day by about 3.6% as a group, led by Everspin Technologies, trading higher by about 36.4% and Applied Optoelectronics, trading higher by about 13.7% on Friday.
VIDEO: Friday Sector Leaders: Rubber & Plastics, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, rubber & plastics shares were relative leaders, up on the day by about 3.8%. Also showing relative strength are semiconductors shares, up on the day by about 3.6% as a group, led by Everspin Technologies, trading higher by about 36.4% and Applied Optoelectronics, trading higher by about 13.7% on Friday. VIDEO: Friday Sector Leaders: Rubber & Plastics, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, rubber & plastics shares were relative leaders, up on the day by about 3.8%. Also showing relative strength are semiconductors shares, up on the day by about 3.6% as a group, led by Everspin Technologies, trading higher by about 36.4% and Applied Optoelectronics, trading higher by about 13.7% on Friday. VIDEO: Friday Sector Leaders: Rubber & Plastics, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, rubber & plastics shares were relative leaders, up on the day by about 3.8%. Also showing relative strength are semiconductors shares, up on the day by about 3.6% as a group, led by Everspin Technologies, trading higher by about 36.4% and Applied Optoelectronics, trading higher by about 13.7% on Friday. VIDEO: Friday Sector Leaders: Rubber & Plastics, Semiconductors The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, rubber & plastics shares were relative leaders, up on the day by about 3.8%. Leading the group were shares of Latham Group, up about 17.2% and shares of Danimer Scientific up about 15.8% on the day. Also showing relative strength are semiconductors shares, up on the day by about 3.6% as a group, led by Everspin Technologies, trading higher by about 36.4% and Applied Optoelectronics, trading higher by about 13.7% on Friday.
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8def2712-b795-49d0-ab78-35ed80e44fa3
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9580.0
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2022-08-05 00:00:00 UTC
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Applied Optoelectronics (AAOI) Q2 2022 Earnings Call Transcript
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-q2-2022-earnings-call-transcript
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Image source: The Motley Fool.
Applied Optoelectronics (NASDAQ: AAOI)
Q2 2022 Earnings Call
Aug 04, 2022, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, and welcome to the Applied Optoelectronics second quarter 2022 financial results conference call. [Operator instructions] Please note that this event is being recorded today. I would now like to turn the conference over to Lindsay Savarese. Please go ahead.
Lindsay Savarese -- Investor Relations
Thank you. I'm Lindsay Savarese, investor relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's second quarter 2022 financial results conference call. After the market closed today, AOI issued a press release announcing its second quarter 2022 financial results and provided its outlook for the third quarter of 2022. The release is also available on the company's website at ao-inc.com.
This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year. Joining us on today's call is Dr. Thompson Lin, AOI's founder, chairman, and CEO; and Dr.
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Stefan Murry, AOI's chief financial officer and chief strategy officer. Thompson will give an overview of AOI's Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2022. A question-and-answer session will follow our prepared remarks. Before we begin, I would like to remind you to review AOI's safe harbor statement.
On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will, or thinks and by other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovations as well as statements regarding the company's outlook for the third quarter of 2022.
Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of thisearnings callto conform these statements to actual results or to changes in the company's expectations. More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K for the year ended December 31st, 2021. Also, all financials discussed today are on a non-GAAP basis, unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.
A reconciliation between our GAAP and non-GAAP measures as well as the discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website. I'd like to note the date of our third quarter 2022earnings callis currently scheduled for November 3rd, 2022. Now I'd like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics' founder, chairman, and CEO.
Thompson?
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Thank you, Lindsay, and thank you for joining our call today. I will begin with some highlights from the quarter before. I'll turn the call over to Stefan Murry, who will discuss a more detailed review of our second quarter financial results and outlook for the third quarter. Our second quarter revenue was adversely affected by a delay in the completion of several orders from a large CATV customer that we expect to ship in Q2.
During the quarter, the customer requested a certain change to several orders. But due to the well-known supply chain issues, we were unable to adjust production and procure raw materials to address these changes prior to quarter end, and the revenue, therefore, slipped into Q3. We have since shipped substantially all these orders and also delayed. We recognize the result in revenue, this shipping delay negative impact our Q2 revenue by approximately $6.7 million.
As a result, our total revenue for the second quarter decreased 3.5% year over year to $52.3 million, which was below our expectations. Turning to the rate of our results. Our gross margin was in line with our expectations, and non-GAAP EPS was above our expectations. Total revenue in our CATV segment of $23.7 million was down 14.1% year over year and was down 5.1% sequentially due to the reason I mentioned above related to the delayed shipping.
The overall demand environment remains robust as MSO, particularly in North America, continues purchasing additional network products in order to upgrade their network. Total revenue for our data center product of $21.5 million decreased 4% year over year and was essentially flat sequentially. As we have discussed previously, the slight year-over-year decline in delivered revenue is due to the decline in 40G, which is nearly the end of its life cycle. This decline was partially offset by an increase in 100G.
As 400G continues to ramp later this year, we expect year-over-year growth for our total data center revenue to be good. We continue to see good customer traction on 400G. Today, we have received nearly $5 million in orders for our 400G products, most of which we expect to be shipped in Q3 and Q4 of this year. During the second quarter, we secured 8 design wins.
Of these design wins, two are for our 400G products, both with existing hyperscale data center operator customers. We also had two design wins for our 100G products with hyperscale customers. We have two 100G wins with network equipment manufacturers supplying the data center industry. The remaining two design wins were in our fiber-to-the-home telecom and other categories.
With that, I will turn the call over to Stefan to review the details of our Q2 performance and outlook for Q3. Stefan?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Thank you, Thompson. As Thompson mentioned, our second quarter revenue was adversely affected by a delay in the completion of several orders from a large CATV customer that we had expected to ship in Q2. During the quarter, the customer requested certain changes to several orders, that due to the well-known supply chain issues, we were unable to adjust production and pursue raw materials to address these changes prior to quarter end and the revenue, therefore, slipped into Q3. We have since shipped substantially all of these orders and although delayed, we have recognized the resulting revenue in Q3.
These shipment delays negatively impacted our Q2 revenue by approximately $6.7 million. As a result, our total revenue for the second quarter decreased 3.5% year over year to $52.3 million, which was below our expectations and essentially flat compared to Q1. While our revenue came in below our expectations, we delivered gross margin in line with our expectations and non-GAAP EPS above our expectations. We're encouraged by the strong CATV environment, the recovery in the telecom market, and the traction we are seeing with our 400G products.
During the quarter, we secured eight new design wins. Of these design wins, two were for our 400G products, both with existing hyperscale data center operator customers. We also had two wins for our 100G products with hyperscale customers. We had two 100G wins with network equipment manufacturers supplying the data center industry.
The remaining two design wins were in our FTTH telecom and others category. We continue to see good customer traction on 400G, and we expect orders will ramp up in the second half of this year. On our Q1 call, we have discussed how a major hyperscale data center customer selected AOI as a vendor for several of our 400G products. We are pleased to have completed the interoperability testing with the company's other prospective vendors and we have begun to receive sizable orders for shipments beginning in Q3.
This was in addition to the two new design wins for 400G in the quarter that I just mentioned. One was with a major hyperscale operator and the other was with a smaller operator. These new wins further bolster our expectation for continued ramp in 400G later this year and into 2023. Turning to our second quarter results.
45% of our Q2 revenue was from our CATV products, 41% was from our data center products, and the remaining 14% from FTTH, telecom and other. In our CATV products segment, the overall demand environment remains robust as MSOs, particularly in North America, continue purchasing additional networking products in order to upgrade their networks. However, for the reasons I mentioned earlier related to the orders that slipped from Q2 into Q3, we generated CATV revenue of $23.7 million, down 14.1% year over year and down 5.1% sequentially. Looking ahead, we currently expect strong sequential improvement in CATV revenue in Q3.
Further out, we continue to have good visibility with CATV orders as we see our backlog stretching throughout 2022 and into 2023. We have significantly increased production capacity for CATV products and we believe that we are well-positioned to deliver on the demand that we are seeing. Our Q2 data center revenue came in at $21.5 million, down 4% year over year and up 0.4% sequentially. In the second quarter, 71% of our data center revenue was from our 100G products, 21% was from our 40G transceiver products and 1.1% was from our 200G and 400G transfer products.
As Thompson noted earlier, we have booked nearly $5 million in orders already for 400G products. And with our production capacity ramping, we expect to ship most of these in Q3 and Q4 of this year. Now turning to our telecom segment. Revenue from our telecom products of $6.3 million was up 88.3% year over year and up 19.2% sequentially.
Our strong second quarter performance was driven by a recovery in the China telecom market. Looking ahead, we continue to expect to see fluctuations in revenue in telecom as the outlook for China Telecom remains somewhat murky. For the second quarter, our top 10 customers represented 87.1% of revenue, up from 86.8% in Q2 of the prior year. We had two 10% or greater customers in the second quarter, one in the CATV market and one in the data center market.
These customers contributed 40% and 22.2% of total revenue, respectively. In Q2, we generated non-GAAP gross margin of 16.7%, which was within our guidance range of 16.5% to 18% and was down from 17.5% in Q1 of 2022 and 25% in Q2 of 2021. The decline in our gross margin was mostly due to continued challenges with the supply chain. Total non-GAAP operating expenses in the second quarter were $18.2 million or 34.9% of revenue.
down from $20 million or 36.9% of revenue in Q2 of the prior year. R&D expenses decreased year over year, reflecting the timing of certain R&D projects, which we believe will come back next quarter. And our sales and marketing expenses benefited from some reduced shipping costs as well as lower personnel costs. Looking forward, we expect non-GAAP operating expenses to hover around $20 million per quarter for the rest of the year.
Non-GAAP operating loss in the second quarter was $9.5 million, compared to an operating loss of $6.5 million in Q2 of the prior year. GAAP net loss for Q2 was $14.5 million or a loss of $0.52 per basic share, compared with a GAAP net loss of $8.2 million or a loss of $0.31 per basic share in Q2 of 2021. On a non-GAAP basis, net loss for Q2 was $7.6 million or a loss of $0.28 per basic share, which was better than our guidance range of a loss of $8.4 million to $9.5 million or loss per share in the range of $0.30 to $0.34 per basic share, and compares to a net loss of $4.1 million or a loss of $0.15 per basic share in Q2 of the prior year. The basic shares outstanding used for computing the net loss in Q2 were 27.6 million.
Turning now to the balance sheet. We ended the second quarter with $40.7 million in total cash, cash equivalents, short-term investments restricted cash. This compares with $40.1 million at the end of the first quarter. We ended the quarter with total debt of $63.8 million, down from $67.2 million last quarter.
As of June 30, we had $98.2 million in inventory, compared to $92 million at the end of Q1. Inventory increased, primarily due to the delay in shipment of the CATV orders that we discussed earlier. We made a total of $1 million in capital investments in the second quarter, including $0.7 million in production equipment and machinery and $0.2 million in construction and building improvements. For the first half of the year, our total capex spend has been about $2 million.
Looking ahead to the second half, we would expect flat to slightly higher capex spending. So for the year, we currently expect between $4 million and $6 million in total capex. Before turning to guidance, I would first like to provide an update on the supply chain environment. We continue to see challenges in some areas of our supply chain, particularly semiconductors.
As in prior quarters, we have adapted to these challenges by purchasing materials from alternative often higher-cost sources. In some cases, we are able to reduce the impact by redesigning products to utilize components with better availability and cost, but this is not always possible for every shortage. We currently see approximately $1 million to $3 million in potential revenue reduction in Q3 due to component shortages. However, this amount represents revenue that will be shifted to Q4 and rather than lost revenue.
Moving now to our Q3 outlook. We expect Q3 revenue to be between $57 million and $60 million, and non-GAAP gross margin to be in the range of 16.5% to 18.5%. Non-GAAP net loss is expected to be in the range of $7.6 million to $9.1 million. And non-GAAP loss per basic share between $0.27 and $0.32 using a weighted average basic share count of approximately 27.9 million shares.
With that, I will turn it back over to the operator for the Q&A session. Operator?
Questions & Answers:
Operator
[Operator instructions] Our first question will come from Tim Savageaux with Northland Capital Markets. Please go ahead.
Tim Savageaux -- Northland Securities -- Analyst
Hi. Good afternoon. Question on your -- well, your outlook and a comment you might have made about datacom. So as you look at the sequential increase you're guiding for Q3, should we assume that's principally all cable TV catch-up? Or is there anything else going on there on the one hand? And on the other, I think Thompson made a comment about returning to year-over-year growth in data center.
Was that comment about Q3, the second half? Or any particular color on that?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Sure. So the first question was about the nature of the sequential increase that we're forecasting in revenue. Yes, a lot of that is related to the cable TV increase. Data center, we think, will be kind of flattish sequentially.
And as far as the returning to sequential growth, that wasn't a specific statement on Q3 or Q4, but we said that at some point during the second half, so probably Q3 or Q4, we should return to sequentially -- to year-over-year growth.
Tim Savageaux -- Northland Securities -- Analyst
OK. Just a follow-up on that. Given the orders in hand and additional design wins for 400 gig, it sounds like you expect that to ramp more materially in Q4? Or are you seeing any offsets in lower speed to kind of drive that flattish outlook for data center in Q3?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I mean a lot of the 400G orders are going to start shipping later in Q3. So there's not as much effect in Q3 as you might otherwise -- would otherwise expect if it was going to be for the entire quarter. And then there's always some fluctuation in some of the lower stuff as well.
So we do expect to see some ramp in 400G but it will be toward the end of the quarter, more material in Q4.
Tim Savageaux -- Northland Securities -- Analyst
OK. And then maybe just one more. When you talk about the $5 million 400G orders, should we assume that's primarily from your kind of just, I guess, recently historically top customer? Maybe you've just added your other historical top customer. But should we assume that's concentrated with one major cloud operator? And how does that initial kind of batch of orders in hand compare to the kind of total opportunity that you see with either that cloud customer or the two major cloud customers?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. So the orders that we've gotten so far bought for 400G, by and large, are not for the largest, the most recent largest major customer. It is for a couple of other hyperscale operators. As far as how we look at this opportunity, I mean, this is very much the beginning.
That $5 million represents an accumulation of orders that we've received during the quarter. So it's not like that just all happened, say, this month or this week or something where we would expect that to be some sort of run rate. But the purpose of that is really just to point out that we are starting to see a sizable backlog for orders, we're ramping our production capacity to be able to accommodate those orders and that we'll be delivering on those orders and presumably, additional orders that we'll receive between now and the end of the year.
Operator
Our next question will come from Paul Silverstein with Cowen. Please go ahead.
Paul Silverstein -- Cowen and Company -- Analyst
Yeah. Stefan, what's the visibility, if any, to margin improvement? What are the -- what needs to happen? I recognize everyone's thinking about supply chain, yourselves included, but what needs to happen for gross margin to get up to more meaningful level from here?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I think as we highlighted in our prepared remarks earlier, the biggest factor that's been affecting us recently has been just -- there's not one particular supply chain issue that I can point to. There's been a lot of various different issues that we've had. I think this is not untypical for other companies.
Of course, not that, that's an excuse, but it's a little bit difficult to predict exactly what the trajectory of those pricing is going to be. As we noted in our prepared remarks, we've done quite a lot of work on qualifying second sources, finding alternatives. In many cases, redesigning products or portions of products to be able to accommodate components that are either more available or are available at a lower cost or hopefully both. So there's been a lot of activity that we've had.
The difficulty in translating all that activity into improved gross margin is that we have to -- if it's a redesign or something like that, we have to burn through the existing inventory. In some cases, the inventory that we're getting or the products that we're able to get are actually higher costs. So that kind of offsets what would otherwise be cost savings from other areas. So I mean, I think we're going to see improvement in gross margin toward the end of the year based on some of the new products that we have kicking in more meaningfully contributing to revenue at that time and also some of the anticipated cost reduction, the combination of some of the cost reduction efforts that we have had.
So our current expectation is from sort of an uptick in gross margin in Q4. But I will hedge that a little bit by saying that, that assumes that the supply chain situation doesn't get materially worse, which seems like it's likely at this point, but one never knows.
Paul Silverstein -- Cowen and Company -- Analyst
Stefan, is what you're talking about getting back to the mid, high-20s for the incremental impact of supply chain? Or you're not even talking about getting back to that level. And I guess we're always trying to get to was to get to 30-plus beyond supply chain, what needs to happen? What can supply -- just reparation of supply chain, what can that get you back to? And then to get to 30-plus, what needs to happen beyond supply chain normalization?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I think the supply chain probably gets us back into the low to mid-20s. To get to 30%, we would need to see contribution -- significant contribution from some of our higher margin -- newer higher-margin products. So a mix shift in addition to the supply chain normalization.
Paul Silverstein -- Cowen and Company -- Analyst
Specifically to 400 gig or your --
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I'm sorry. Go ahead, Paul, I'm sorry.
Paul Silverstein -- Cowen and Company -- Analyst
Specifically, the 400 gig or you're speaking more generically in terms of new products?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
More generically about -- I mean, 400 gig can be a contributor there. That's certainly part of it, but other new products as well. And like I said, the time frame on the supply chain normalization, we think, is sort of Q4-ish, again, barring any other things that happen. The new products, again, will start to kick in probably in Q4, but it will probably contribute more meaningfully in quarters after that, so into 2023.
Paul Silverstein -- Cowen and Company -- Analyst
And I apologize, I know you've addressed this in the past, but to get to breakeven, what does that assume in terms of volume and gross margin, your assumptions?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Right. Well, we gave some guidance to operating expense. It's going to hover probably between $19.5 million, $20 million, something like that through the rest of the year. So you can kind of -- and I don't expect that to change meaningfully next year really either.
We've been fairly consistent in operating expense. So you can kind of do the math on the gross margin and revenue numbers that it would take to get to breakeven. As we said before, I think we can get back to the upper 20s or even 30s, maybe touch 30% at some point. It's not likely to happen in the next couple of quarters, given the trajectory that we just talked about.
So if you kind of assume that and plug in a, say, $20 million-ish operating expense, you can get a pretty rough idea on what the revenue level would need to be.
Paul Silverstein -- Cowen and Company -- Analyst
I appreciate it. Thank you.
Operator
There are no remaining questions at this time. And with that, we will conclude our question-and-answer session. I'd like to turn the conference back over to Dr. Thompson Lin for any closing remarks.
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
OK. Thank you for joining us today, as always, we want to extend the thanks to our investors, customers, and employees for your continued support. We look forward to updating you on our progress next quarter.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Lindsay Savarese -- Investor Relations
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Tim Savageaux -- Northland Securities -- Analyst
Paul Silverstein -- Cowen and Company -- Analyst
More AAOI analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (NASDAQ: AAOI) Q2 2022 Earnings Call Aug 04, 2022, 4:30 p.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Tim Savageaux -- Northland Securities -- Analyst Paul Silverstein -- Cowen and Company -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. In some cases, you can identify forward-looking statements by terminology such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will, or thinks and by other similar expressions that convey uncertainty of future events or outcomes.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Tim Savageaux -- Northland Securities -- Analyst Paul Silverstein -- Cowen and Company -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics (NASDAQ: AAOI) Q2 2022 Earnings Call Aug 04, 2022, 4:30 p.m. During the quarter, the customer requested certain changes to several orders, that due to the well-known supply chain issues, we were unable to adjust production and pursue raw materials to address these changes prior to quarter end and the revenue, therefore, slipped into Q3.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Tim Savageaux -- Northland Securities -- Analyst Paul Silverstein -- Cowen and Company -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics (NASDAQ: AAOI) Q2 2022 Earnings Call Aug 04, 2022, 4:30 p.m. Non-GAAP operating loss in the second quarter was $9.5 million, compared to an operating loss of $6.5 million in Q2 of the prior year.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Tim Savageaux -- Northland Securities -- Analyst Paul Silverstein -- Cowen and Company -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics (NASDAQ: AAOI) Q2 2022 Earnings Call Aug 04, 2022, 4:30 p.m. Revenue from our telecom products of $6.3 million was up 88.3% year over year and up 19.2% sequentially.
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953817a6-652f-4505-8bee-d520dcc92aa0
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9581.0
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2022-08-04 00:00:00 UTC
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Applied Optoelectronics (AAOI) Reports Q2 Loss, Lags Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q2-loss-lags-revenue-estimates
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nan
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nan
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.31 per share when it actually produced a loss of $0.29, delivering a surprise of 6.45%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.3 million for the quarter ended June 2022, missing the Zacks Consensus Estimate by 8.52%. This compares to year-ago revenues of $54.19 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have lost about 62.7% since the beginning of the year versus the S&P 500's decline of -12.8%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.25 on $60.17 million in revenues for the coming quarter and -$1.04 on $234.12 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, SkyWater Technology, Inc. (SKYT), has yet to report results for the quarter ended June 2022. The results are expected to be released on August 15.
This company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -126.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
SkyWater Technology, Inc.'s revenues are expected to be $44.05 million, up 6.9% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
SkyWater Technology, Inc. (SKYT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.30. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.30. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.3 million for the quarter ended June 2022, missing the Zacks Consensus Estimate by 8.52%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.30. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.3 million for the quarter ended June 2022, missing the Zacks Consensus Estimate by 8.52%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.30. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.3 million for the quarter ended June 2022, missing the Zacks Consensus Estimate by 8.52%.
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6f81bfa3-d3a8-4dd8-926f-9b935f5bcae8
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9582.0
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2022-07-25 00:00:00 UTC
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Is Applied Optoelectronics (NASDAQ:AAOI) A Risky Investment?
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AAOI
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https://www.nasdaq.com/articles/is-applied-optoelectronics-nasdaq%3Aaaoi-a-risky-investment-0
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nan
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nan
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Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. But should shareholders be worried about its use of debt?
What Risk Does Debt Bring?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
How Much Debt Does Applied Optoelectronics Carry?
The chart below, which you can click on for greater detail, shows that Applied Optoelectronics had US$146.1m in debt in March 2022; about the same as the year before. However, it does have US$32.0m in cash offsetting this, leading to net debt of about US$114.1m.
NasdaqGM:AAOI Debt to Equity History July 25th 2022
A Look At Applied Optoelectronics' Liabilities
The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$116.5m due within a year, and liabilities of US$90.6m falling due after that. Offsetting this, it had US$32.0m in cash and US$55.4m in receivables that were due within 12 months. So it has liabilities totalling US$119.8m more than its cash and near-term receivables, combined.
The deficiency here weighs heavily on the US$46.4m company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet. So we definitely think shareholders need to watch this one closely. After all, Applied Optoelectronics would likely require a major re-capitalisation if it had to pay its creditors today. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Applied Optoelectronics's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
In the last year Applied Optoelectronics had a loss before interest and tax, and actually shrunk its revenue by 12%, to US$214m. We would much prefer see growth.
Caveat Emptor
While Applied Optoelectronics's falling revenue is about as heartwarming as a wet blanket, arguably its earnings before interest and tax (EBIT) loss is even less appealing. Its EBIT loss was a whopping US$57m. If you consider the significant liabilities mentioned above, we are extremely wary of this investment. That said, it is possible that the company will turn its fortunes around. But we think that is unlikely, given it is low on liquid assets, and burned through US$9.4m in the last year. So we consider this a high risk stock and we wouldn't be at all surprised if the company asks shareholders for money before long. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Be aware that Applied Optoelectronics is showing 3 warning signs in our investment analysis , you should know about...
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. NasdaqGM:AAOI Debt to Equity History July 25th 2022 A Look At Applied Optoelectronics' Liabilities The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$116.5m due within a year, and liabilities of US$90.6m falling due after that. Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'
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NasdaqGM:AAOI Debt to Equity History July 25th 2022 A Look At Applied Optoelectronics' Liabilities The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$116.5m due within a year, and liabilities of US$90.6m falling due after that. We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. Caveat Emptor While Applied Optoelectronics's falling revenue is about as heartwarming as a wet blanket, arguably its earnings before interest and tax (EBIT) loss is even less appealing.
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NasdaqGM:AAOI Debt to Equity History July 25th 2022 A Look At Applied Optoelectronics' Liabilities The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$116.5m due within a year, and liabilities of US$90.6m falling due after that. We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. The first step when considering a company's debt levels is to consider its cash and debt together.
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We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. NasdaqGM:AAOI Debt to Equity History July 25th 2022 A Look At Applied Optoelectronics' Liabilities The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$116.5m due within a year, and liabilities of US$90.6m falling due after that. Be aware that Applied Optoelectronics is showing 3 warning signs in our investment analysis , you should know about... Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
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7ea83ff4-fa88-4910-8051-c28fc71f0b5d
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9583.0
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2022-05-05 00:00:00 UTC
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Applied Optoelectronics (AAOI) Reports Q1 Loss, Misses Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q1-loss-misses-revenue-estimates
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nan
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nan
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.31. This compares to loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.45%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.22 per share when it actually produced a loss of $0.20, delivering a surprise of 9.09%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.24 million for the quarter ended March 2022, missing the Zacks Consensus Estimate by 1.12%. This compares to year-ago revenues of $49.7 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have lost about 44.6% since the beginning of the year versus the S&P 500's decline of -9.8%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.24 on $56.37 million in revenues for the coming quarter and -$0.87 on $231.89 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Ceva (CEVA), another stock in the same industry, has yet to report results for the quarter ended March 2022. The results are expected to be released on May 10.
This chip designer is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +1700%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ceva's revenues are expected to be $32.6 million, up 28.4% from the year-ago quarter.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
CEVA, Inc. (CEVA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.31. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.31. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.24 million for the quarter ended March 2022, missing the Zacks Consensus Estimate by 1.12%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.31. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.24 million for the quarter ended March 2022, missing the Zacks Consensus Estimate by 1.12%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.31. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report The company has topped consensus revenue estimates just once over the last four quarters.
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d4143422-0945-4013-9589-84995daf5f74
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9584.0
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2022-05-03 00:00:00 UTC
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Cirrus Logic (CRUS) Surpasses Q4 Earnings and Revenue Estimates
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AAOI
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https://www.nasdaq.com/articles/cirrus-logic-crus-surpasses-q4-earnings-and-revenue-estimates
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nan
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nan
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Cirrus Logic (CRUS) came out with quarterly earnings of $2.01 per share, beating the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 42.55%. A quarter ago, it was expected that this chipmaker would post earnings of $2.15 per share when it actually produced earnings of $2.54, delivering a surprise of 18.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cirrus Logic, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $489.97 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 16.55%. This compares to year-ago revenues of $293.54 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cirrus Logic shares have lost about 14.8% since the beginning of the year versus the S&P 500's decline of -12.8%.
What's Next for Cirrus Logic?
While Cirrus Logic has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cirrus Logic: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.41 on $291.37 million in revenues for the coming quarter and $6.04 on $1.78 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended March 2022. The results are expected to be released on May 5.
This maker of fiber optic products used by cable TV providers is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -47.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Applied Optoelectronics' revenues are expected to be $52.84 million, up 6.3% from the year-ago quarter.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended March 2022. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended March 2022. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Cirrus Logic, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $489.97 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 16.55%.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended March 2022. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Cirrus Logic (CRUS) came out with quarterly earnings of $2.01 per share, beating the Zacks Consensus Estimate of $1.41 per share.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended March 2022. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Cirrus Logic (CRUS) came out with quarterly earnings of $2.01 per share, beating the Zacks Consensus Estimate of $1.41 per share.
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c308af70-a35d-4ee4-a6f4-4785900251ba
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9585.0
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2022-02-25 00:00:00 UTC
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Applied Optoelectronics (AAOI) Q4 2021 Earnings Call Transcript
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-q4-2021-earnings-call-transcript
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nan
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Applied Optoelectronics (NASDAQ: AAOI)
Q4 2021 Earnings Call
Feb 24, 2022, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon. I will be your conference operator. And at this time, I would like to welcome everyone to the Applied Optoelectronics fourth quarter and full year 2021earnings conference call [Operator instructions] Please note that this call is being recorded.
I would now like to turn the conference over to Cassidy Fuller, investor relations for AOI. Ms. Fuller, you may begin.
Cassidy Fuller -- Investor Relations
Thank you. I'm Cassidy Fuller, investor relations for Applied Optoelectronics. And I'm pleased to welcome you to AOI's fourth quarter and full year 2021 financial results conference call. After the market closed today, AOI issued a press release announcing its fourth quarter and full year 2021 financial results and provided its outlook for the first quarter of 2020.
The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the investor relations section of the AOI website. It will be archived for one year.
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Joining us on today's call are Dr. Thompson Lin, AOI's founder, chairman, and CEO; and Dr. Stefan Murry, AOI's chief financial officer and chief strategy officer. Thompson will give an overview of AOI's Q4 results, and Stefan will provide financial details and the outlook for the first quarter of 2022.
A question-and-answer session will follow our prepared remarks. Before we begin, I'd like to remind you to review AOI's safe harbor statement. On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements.
In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intend, predict, expect, plan, may, should, could, would, will or things and by other similar expressions that may convey uncertainty of future events or outcomes. Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovation, as well as statements regarding the company's outlook for the first quarter of 2022. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of thisearnings callto conform these statements to actual results or to changes in the company's expectations. More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports and filed with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2020.
Also, all financials discussed today are on a non-GAAP basis, unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures, as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website. I'd like to note the date of our first quarter 2022earnings callis currently scheduled for May 5, 2022.
Now I'd like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics' founder, chairman and CEO. Thompson?
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Thank you, Cassidy, and thank you for joining our call today. Turning to the fourth quarter, we delivered revenue and non-GAAP EPS in line with our expectations and gross margin below our expectations, mostly due to unfavorable product mix and increased costs from unanticipated supply chain and logistic expenses. During the quarter, we continued to see strong demand in the CATV market and improving conditions in the data center market. We achieved total revenue for fourth quarter of $54.4 million, which increased 3.1%, compared to the fourth quarter of 2020 and increased 2.1% sequentially.
Total revenue in our CATV segment of $24.9 million was up 56.4% year over year and up 7.9%, sequentially. The overall CATV demand environment remains strong, and we currently have an unprecedented order backlog extended into Q4 of this year. We believe the condition in our CATV market are likely to remain highly unfavorable into 2023 because our products are currently being used in network upgrade project by the three largest CATV MSO in the U.S., along with other smaller operators. For the revenue for our data center product of $25.2 million decreased 23.1% year over year and increased 5.3% sequentially.
The sequential growth is encouraged as inventory level with our largest data center customer appear to have returned to normal level and delivery against new demand from this customer has resumed. In addition to our largest data center customer, we saw a significant order increase from several of our new data center customers. Some of these increases were offset and anticipated decline in 40G revenue indicating that the mix continue to shift to 100G. In addition, I'm very pleased to report that during the quarter, we received our first volume orders for 400G products from two different data center customers.
This represents the accumulation of a multi-year qualification effort with these customers, and we believe this initial order will lead to further significant order in the future as 400G gradually surpasses 100G as a dominant data rate within large data centers. During the fourth quarter, we secured four design wins among four customers. Two of these design wins were with data center customers and two were with telecom customers. One of the data center wins was with an existing data center customer for our 400G products.
This customer is currently purchasing 100G product from AOI and expressed an initial volume order for its early 400G deployments. With that, I will turn the call over to Stefan to review the details of our Q4 performance and outlook for Q1. Stefan?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Thank you, Thompson. As Thompson mentioned, we delivered revenue and non-GAAP EPS in line with our expectations and gross margin below our expectations, mostly due to unfavorable product mix and unanticipated supply chain and logistics costs. During the quarter, we continued to see strong demand in the CATV market and improving conditions in the data center market. As we anticipated, our results were adversely impacted by approximately $3 million due to the well-known component shortages and supply chain disruptions.
Currently, we believe that supply constraints are easing and do not anticipate revenue shortfall in the first quarter due to an inability to source necessary raw materials. We do believe, however, that pricing and shipping costs on many of these components will remain elevated for some time, and this will negatively impact margins in the quarter. Turning to our quarterly performance. We secured four new design wins among four customers.
Of the four design wins, two were with data center customers and two were with telecom customers. One of the data center design wins was our first for 400G products and was with an existing data center customer. This customer is currently purchasing 100G products from AOI and has placed an initial volume order for its earliest 400G deployments. We are pleased to report that this customer has chosen AOI as the primary supplier for its 400G data center transceiver needs.
Total fourth quarter revenue of $54.4 million, increased 3.1%, compared to the fourth quarter of 2020 and increased 2.1% sequentially. Our Q4 revenue was at the upper end of our guidance range of $51 million to $55 million. In the fourth quarter, 46% of our revenue was from our data center products, 46% from CATV products, with the remaining 8% from FTTH, telecom and other. In our CATV products segment, the overall demand environment remains exceptionally strong as MSOs, particularly in North America, continue to upgrade their networks.
We generated revenue of $24.9 million, up 56.4% year over year and up 7.9% sequentially. Looking ahead, we continue to have good visibility with CATV orders as we currently have an unprecedented order backlog extending into Q4 of this year. We believe that conditions in our CATV market are likely to remain highly favorable into 2023 because our products are currently being used in network upgrade projects by the three largest CATV MSOs in the U.S. along with other smaller operators.
In general, these network upgrades are still in their early phases, and all of the projects are currently expected to continue well into 2023 or beyond. Our Q4 data center revenue came in at $25.2 million, down 23.1% year over year and up 5.3% sequentially. In the fourth quarter, 14% of our data center revenue was from our 40G transceiver products, 79% was from our 100G products and 0.4% was from our 200G and 400G transceiver products. We are very pleased to have begun volume shipments of our 400G portfolio as these products have been under qualification by 11 different customers and the first design wins and associated volume orders give us increased confidence in our traction within the 400G data center market.
While we begin shipments of 400G, we are also preparing our first 800G samples, which we expect to deliver to the first of our interested customers at the end of next month. And we have begun concept discussions with several customers on ideas beyond 800G, including 1.6 terabits per second. So we can see a clear progression of increasing data rate products being developed by AOI and customer interest in these future product activities remains fine. Now turning to our telecom segment.
Revenue from our telecom products of $3.3 million was down 5.8% year over year and declined 36.1% sequentially. In line with our expectations, we saw continued volatility in market conditions in the China telecom market with respect to 5G rollouts. Looking ahead, we continue to expect quarter-to-quarter variability until the pace of 5G rollouts in China becomes more predictable. For the fourth quarter, our top 10 customers represented 88.4% of revenue, up from 85.1% in Q4 of the prior year.
We had three 10% or greater customers in the fourth quarter, one in the CATV market and two in the data center market. These customers contributed 36.1%, 15% and 12.4% of total revenue, respectively. For the full year, we had three 10% or greater customers, two in the CATV market and one in the data center market. These customers contributed 25.6%, 14.1% and 11.9% of revenue, respectively.
In Q4, we generated non-GAAP gross margin of 17.6%, which was below our guidance range of 18.5% to 20% and was down from 19.9% in Q3 of 2021 and 27.5% in Q4 of 2020. The decline in our gross margin was mostly due to unfavorable product mix and increased costs from component shortages. As we discussed last quarter, we have experienced price pressure on certain of our 100G data center products as these product lines have reached full maturity and 400G editions have begun. In addition, in our CATV segment, we have seen an inventory correction on some of our higher-margin products by one of our customers that has significantly reduced orders for these higher-margin products.
These product mix issues overlap with well-known supply chain challenges and increases in shipping costs that also provide a margin headwind. Finally, we've reduced production of lasers in our fab in Q4 due to slower demand from the China 5G market, as well as managing inventory ahead of the Lunar New Year. This reduction in fab output resulted in under absorption of the fixed cost of running the fab and further pressured our margins. We believe most of these impacts are transitory.
While 100G margins are likely to continue to remain pressured, we expect these products to represent a smaller contribution to data center revenue as 400G begins its ramp, and we begin to see cost reduction associated with the transition to volume production. On the CATV front, we have a number of cost reduction efforts that have been implemented to reduce raw material and production costs for our highest-volume products. In addition, we expect the unfavorable mix shift due to the inventory correction mentioned above to ease by midyear. While we expect margins in Q1 to continue to be pressured by many of the factors I've already discussed and additionally by the effects of Lunar New Year on our Asian operations, Q2 and beyond currently looks significantly more favorable in terms of gross margin as these headwinds moderate or eliminated altogether.
Total non-GAAP operating expenses in the fourth quarter were $16.9 million or 31% of revenue, compared with $20.6 million or 39% of revenue in Q4 of the prior year. The reduction in operating expenses is due to a decrease in R&D spend as some of the costs associated with our 400G development have begun to subside, along with benefits from certain cost reduction efforts we made during the quarter. Operating expenses were further improved by careful cost control, along with a significant reversal of previously accrued bonuses, especially to executives, which occurred in Q4. We anticipate continued disciplined cost control until a return to consistent profitability has been demonstrated.
While we intend to carefully control operating expenses, we continue to invest in new product development. In addition to the 800G and 1.6-terabit transceiver work I discussed earlier for our data center customers, we also have been actively developing high-power lasers intended for use in LiDAR and other sensing applications. These LiDAR lasers have applications in automotive driver assistance systems, security monitoring, augmented reality and other 3D sensing systems. These products have been under development for several years now.
And within the last few months, we have begun shipping qualification samples to eight different customers, most of which are in the automotive space. Initial feedback from these customers has been very positive, further reinforcing our conviction that AOI's laser-related R&D remains at the forefront of new technology, both in our data center market and in new markets like automotive. While meaningful revenue for these LiDAR lasers is likely a year or two away, the addition of these products continues the trend of greater diversity within our customer base. As many of you know, increasing revenue diversity has been a key element of our risk reduction strategy for more than three years.
Non-GAAP operating loss in the fourth quarter was $7.3 million, compared to an operating loss of $6.1 million in Q4 of the prior year. GAAP net loss for Q4 was $14.5 million or a loss of $0.54 per basic share, compared with a GAAP net loss of $13.4 million or a loss of $0.57 per basic share in Q4 of 2020. On a non-GAAP basis, net loss for Q4 was $5.5 million, or a loss of $0.20 per basic share, which was in line with our guidance range of a loss of $5.5 million to $6.6 million or a loss per share in the range of $0.20 to $0.24 per basic share and compares to a net loss of $4.8 million or a loss of $0.20 per basic share in Q4 of the prior year. The basic shares outstanding used for computing the net loss in Q4 were 27.1 million.
Turning now to the balance sheet. We ended the fourth quarter with $41.1 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $48.9 million at the end of the third quarter. Notably, we reduced total debt, compared with Q3 by $5.8 million by utilizing less of our revolving lines of credit at year-end.
As of December 31, we had $92.5 million in inventory, compared to $94.5 million at the end of Q3. Inventory decreased, primarily due to utilization of inventory for customer orders. We made a total of $2.3 million in capital investments in the quarter, including $2.1 million in production equipment and machinery and $0.1 million in construction and building improvements. We are still in the process of evaluating our capex plans for 2022, and we will share our expectations as soon as we complete our analysis.
Moving now to our Q1 outlook. We expect Q1 revenue to be between $51 million and $54 million and non-GAAP gross margin to be in the range of 15.5% to 17.5%. Non-GAAP net loss is expected to be in the range of $8.3 million to $9.5 million and non-GAAP loss per basic share between $0.30 and $0.35 using a weighted average basic share count of approximately 27.5 million shares. With that, I'll turn it back over to the operator for the Q&A session.
Questions & Answers:
Operator
Thank you. [Operator instructions] And our first question today will come from Sam Peterman with Craig-Hallum Capital Group. Please go ahead.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
Hi, guys. Thanks for taking my question. I wanted to ask on gross margins. Obviously, with -- it seems like some of the mix issues and cable resolving by the middle of the year that the margin outlook for the back half would be better.
Do you guys think you can get into kind of the mid-20s there or what kind of as the cable issue resolves in data center, you start to ramp 400-gig, is mid-20s kind of reasonable for where you guys think you can go? Or how do you think about margins in the second half?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I think, mid-20s is an achievable number for us. It's difficult to put a precise time line on that. I mean, there's a lot of moving parts as we mentioned, some of the component shortages and other things that have been affecting us.
It's a little bit difficult to provide an exact time frame for that, but it's certainly a number that we think is achievable.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
OK. Fair enough. On data center, it sounds like that these two customers in 400-gig ramping in the second half that will provide an uplift from where you are today? Should you -- how should we think about data center revenues in the first half? And then, how should we think about what 400-gig can add? Is that in the low millions or even potentially more than that in the second half?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Well, I think, data center revenues probably will be reasonably consistent throughout the first half of the year with where they were in the last quarter. And then, as you mentioned, we'll start to see around. Now some of that -- there will be a little bit of a shift there, as we mentioned, in our prepared remarks from sort of the 100G to starting to see a little bit more of an increase in the 400G revenue. It's probably not going to be hugely meaningful certainly in the first half until we start to see a ramp later on in the year, hopefully.
But within that as that mix is shifting, we don't think the overall number is going to change that much in the first quarter or two or a year.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
OK. And then, on the 400-gig customers, you kind of described one of them. Is there any way you could characterize the other one? And then, is there any way -- are you -- on the second point of your customer, are you also the primary or lead supplier there? And how would you size that one of that opportunity relative to that first 400-gig win?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I would say that the size of both the customers is probably, I mean, roughly similar, I don't have the total purchasing trend for each of them. I don't have a number on the customer that we didn't talk about as much. I don't have information from them about whether we're the primary or secondary source on that. Some customers will tell you that information directly, others will not.
So from that perspective, I can't give you that information. But certainly, we believe that all of the customers will have multiple sources and which are in the top one or two, you're probably going to get a pretty reasonable market share, and that's what we would expect with both of these customers.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
OK. Fair enough. That's it from me. Thanks, guys.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
OK.
Operator
[Operator instructions] And our next question will come from Robert Mander with Cowen. Please go ahead.
Unknown speaker
This is Bob Mander for Paul Silverstein. Guys, at one time, you were thinking that 400G could be 10% of revenue this year. Is that still in the work -- still what you would see?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I wouldn't say -- I don't think not. We haven't changed our outlook much on the 400G. I think, it's really positive that we're starting to see actual orders or volume orders flowing from a couple of customers now. We still have a number of qualification efforts that are underway, but we're optimistic we'll culminate here in the next few months.
And that -- all of those opportunities together should drive revenue, whether that will be 10% by the end of the year or not, it's difficult to say, but I think it's possible.
Unknown speaker
OK. In the past, I guess, last quarter, one of your principal customers for 400G was seeing their own supply chain constraints, which was limiting their ability to place orders. Did I hear correctly that that's been resolved?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
That was more related to just the overall inventory situation. As you recall, if you go back a few quarters, we had -- that particular customer had been hit with supply chain issues that affected their overall deployment of not only 400G but also 100G technology at the time. So it wasn't a statement specifically at 400G, it was just their overall demand to be coming back.
Unknown speaker
OK. But that's been -- is that still an issue with them, or has that been addressed?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I think, it's largely been addressed at this point.
Unknown speaker
OK, OK. And at the moment, your data center and CATV is pretty evenly split. And it sounds like you're pretty optimistic about going forward to CATV. Do you still see an even split? Or are you going to expect to see CATV be a larger, a greater percentage than data center going forward for the year?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I think, they'll be fairly comparable for the year. As you recall from past experience, our first quarter in cable TV can be a little bit challenging for us just because we have the Lunar New Year shutdown, which affects most of our cable TV products are made in Asia. So by virtue of the fact that there's just less time in Q1 due to the Lunar New Year that oftentimes puts a damper on our ability to expand cable TV. So we may see cable TV not grow as much early in the year as it will in the back half of the year.
And so, from quarter to quarter, you might see some variability. But if you look at the year as a whole, I think the two will probably be fairly comfortable.
Unknown speaker
OK. All right. Well, thank you for taking my questions.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
My pleasure.
Operator
[Operator instructions] And this will conclude the question-and-answer session. I'd like to turn the conference back over to Thompson Lin for any closing remarks.
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
OK. Thank you for joining our call today. We want to extend our thanks to you, to our investors, customers and employees for your continued support. We look forward to updating you on our nextearnings call
Operator
[Operator signoff]
Duration: 30 minutes
Call participants:
Cassidy Fuller -- Investor Relations
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
Unknown speaker
More AAOI analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (NASDAQ: AAOI) Q4 2021 Earnings Call Feb 24, 2022, 4:30 p.m. We look forward to updating you on our nextearnings call Operator [Operator signoff] Duration: 30 minutes Call participants: Cassidy Fuller -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Sam Peterman -- Craig-Hallum Capital Group -- Analyst Unknown speaker More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intend, predict, expect, plan, may, should, could, would, will or things and by other similar expressions that may convey uncertainty of future events or outcomes.
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We look forward to updating you on our nextearnings call Operator [Operator signoff] Duration: 30 minutes Call participants: Cassidy Fuller -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Sam Peterman -- Craig-Hallum Capital Group -- Analyst Unknown speaker More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics (NASDAQ: AAOI) Q4 2021 Earnings Call Feb 24, 2022, 4:30 p.m. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Joining us on today's call are Dr. Thompson Lin, AOI's founder, chairman, and CEO; and Dr. Stefan Murry, AOI's chief financial officer and chief strategy officer.
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We look forward to updating you on our nextearnings call Operator [Operator signoff] Duration: 30 minutes Call participants: Cassidy Fuller -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Sam Peterman -- Craig-Hallum Capital Group -- Analyst Unknown speaker More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics (NASDAQ: AAOI) Q4 2021 Earnings Call Feb 24, 2022, 4:30 p.m. On a non-GAAP basis, net loss for Q4 was $5.5 million, or a loss of $0.20 per basic share, which was in line with our guidance range of a loss of $5.5 million to $6.6 million or a loss per share in the range of $0.20 to $0.24 per basic share and compares to a net loss of $4.8 million or a loss of $0.20 per basic share in Q4 of the prior year.
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We look forward to updating you on our nextearnings call Operator [Operator signoff] Duration: 30 minutes Call participants: Cassidy Fuller -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Sam Peterman -- Craig-Hallum Capital Group -- Analyst Unknown speaker More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics (NASDAQ: AAOI) Q4 2021 Earnings Call Feb 24, 2022, 4:30 p.m. Our Q4 data center revenue came in at $25.2 million, down 23.1% year over year and up 5.3% sequentially.
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Applied Optoelectronics (AAOI) Reports Q4 Loss, Tops Revenue Estimates
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https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q4-loss-tops-revenue-estimates
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.22. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.28 per share when it actually produced a loss of $0.20, delivering a surprise of 28.57%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $54.41 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.95%. This compares to year-ago revenues of $52.33 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Applied Optoelectronics shares have lost about 25.3% since the beginning of the year versus the S&P 500's decline of -11.3%.
What's Next for Applied Optoelectronics?
While Applied Optoelectronics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Applied Optoelectronics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.24 on $53.37 million in revenues for the coming quarter and -$0.58 on $245.11 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Broadcom Inc. (AVGO), another stock in the same industry, has yet to report results for the quarter ended January 2022. The results are expected to be released on March 3.
This chipmaker is expected to post quarterly earnings of $8.15 per share in its upcoming report, which represents a year-over-year change of +23.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Broadcom Inc.'s revenues are expected to be $7.61 billion, up 14.3% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.22. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.22. Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $54.41 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.95%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.22. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Applied Optoelectronics, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $54.41 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.95%.
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Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.22. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report The company has topped consensus revenue estimates two times over the last four quarters.
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f0a17be0-b2b1-4fda-a254-5e4215fd910c
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9587.0
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2022-02-17 00:00:00 UTC
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Earnings Preview: Applied Optoelectronics (AAOI) Q4 Earnings Expected to Decline
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AAOI
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https://www.nasdaq.com/articles/earnings-preview%3A-applied-optoelectronics-aaoi-q4-earnings-expected-to-decline
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nan
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nan
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Applied Optoelectronics (AAOI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 24, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This maker of fiber optic products used by cable TV providers is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -10%.
Revenues are expected to be $53.37 million, up 2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Applied Optoelectronics?
For Applied Optoelectronics, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Applied Optoelectronics will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Applied Optoelectronics would post a loss of $0.28 per share when it actually produced a loss of $0.20, delivering a surprise of +28.57%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Applied Optoelectronics doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics (AAOI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
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Applied Optoelectronics (AAOI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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Applied Optoelectronics (AAOI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Applied Optoelectronics (AAOI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
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135049f7-906a-458c-9fa6-8bd2e83842f8
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9588.0
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2022-02-09 00:00:00 UTC
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Impinj (PI) Q4 Earnings and Revenues Surpass Estimates
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AAOI
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https://www.nasdaq.com/articles/impinj-pi-q4-earnings-and-revenues-surpass-estimates
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nan
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nan
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Impinj (PI) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 1,500%. A quarter ago, it was expected that this provider of radio frequency identification products would post a loss of $0.10 per share when it actually produced a loss of $0.04, delivering a surprise of 60%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Impinj, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.57 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.10%. This compares to year-ago revenues of $36.45 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Impinj shares have lost about 5.4% since the beginning of the year versus the S&P 500's decline of -5.1%.
What's Next for Impinj?
While Impinj has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Impinj: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.04 on $50.51 million in revenues for the coming quarter and $0.24 on $232.27 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended December 2021. The results are expected to be released on February 24.
This maker of fiber optic products used by cable TV providers is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -10%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Applied Optoelectronics' revenues are expected to be $53.37 million, up 2% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Impinj, Inc. (PI): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended December 2021. Impinj, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $52.57 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 1.10%.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Impinj (PI) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.01 per share.
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One other stock from the same industry, Applied Optoelectronics (AAOI), is yet to report results for the quarter ended December 2021. Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Impinj (PI) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.01 per share.
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a7ee08ea-298a-41f9-a31c-f3f323fc27ad
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9589.0
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2022-01-26 00:00:00 UTC
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Is Applied Optoelectronics (NASDAQ:AAOI) A Risky Investment?
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AAOI
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https://www.nasdaq.com/articles/is-applied-optoelectronics-nasdaq%3Aaaoi-a-risky-investment
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nan
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nan
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David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
When Is Debt A Problem?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.
How Much Debt Does Applied Optoelectronics Carry?
As you can see below, Applied Optoelectronics had US$145.5m of debt, at September 2021, which is about the same as the year before. You can click the chart for greater detail. However, it does have US$43.5m in cash offsetting this, leading to net debt of about US$101.9m.
NasdaqGM:AAOI Debt to Equity History January 26th 2022
How Healthy Is Applied Optoelectronics' Balance Sheet?
The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$93.3m due within a year, and liabilities of US$105.2m falling due after that. Offsetting this, it had US$43.5m in cash and US$52.4m in receivables that were due within 12 months. So its liabilities total US$102.6m more than the combination of its cash and short-term receivables.
This is a mountain of leverage relative to its market capitalization of US$107.8m. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Applied Optoelectronics can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Over 12 months, Applied Optoelectronics made a loss at the EBIT level, and saw its revenue drop to US$209m, which is a fall of 9.3%. We would much prefer see growth.
Caveat Emptor
Over the last twelve months Applied Optoelectronics produced an earnings before interest and tax (EBIT) loss. Indeed, it lost a very considerable US$56m at the EBIT level. When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. So we think its balance sheet is a little strained, though not beyond repair. However, it doesn't help that it burned through US$38m of cash over the last year. So in short it's a really risky stock. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 3 warning signs for Applied Optoelectronics that you should be aware of.
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We note that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does have debt on its balance sheet. NasdaqGM:AAOI Debt to Equity History January 26th 2022 How Healthy Is Applied Optoelectronics' Balance Sheet? Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price.
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We note that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does have debt on its balance sheet. NasdaqGM:AAOI Debt to Equity History January 26th 2022 How Healthy Is Applied Optoelectronics' Balance Sheet? While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.
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We note that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does have debt on its balance sheet. NasdaqGM:AAOI Debt to Equity History January 26th 2022 How Healthy Is Applied Optoelectronics' Balance Sheet? When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt.
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We note that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does have debt on its balance sheet. NasdaqGM:AAOI Debt to Equity History January 26th 2022 How Healthy Is Applied Optoelectronics' Balance Sheet? The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$93.3m due within a year, and liabilities of US$105.2m falling due after that.
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3e096cbd-2acf-40d4-ac51-22dd5e5c7b5b
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9590.0
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2022-01-10 00:00:00 UTC
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Applied Optoelectronics Inc Shares Close in on 52-Week Low - Market Mover
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-shares-close-in-on-52-week-low-market-mover
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nan
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nan
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. The stock is currently down 8.8% year-to-date, down 54.0% over the past 12 months, and down 78.9% over the past five years. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 fell 1.9%.
Trading Activity
Trading volume this week was 97.9% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1.
Technical Indicators
The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Information Technology industry sector , lags it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 42.8%
The company's stock price performance over the past 12 months lags the peer average by -209.3%
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1. The stock closed above its Bollinger band, indicating it may be overbought.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 fell 1.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Information Technology industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 42.8% The company's stock price performance over the past 12 months lags the peer average by -209.3% This story was produced by the Kwhen Automated News Generator.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 fell 1.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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693452e8-9a13-4296-a376-c78cae61756a
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9591.0
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2022-01-09 00:00:00 UTC
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Applied Optoelectronics Inc Shares Approach 52-Week Low - Market Mover
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-shares-approach-52-week-low-market-mover
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nan
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nan
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. The stock is currently down 8.8% year-to-date, down 51.3% over the past 12 months, and down 79.1% over the past five years. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 fell 1.9%.
Trading Activity
Trading volume this week was 97.9% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1.
Technical Indicators
The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Information Technology industry sector , lags it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 42.8%
The company's stock price performance over the past 12 months lags the peer average by -205.8%
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.1. The stock closed above its Bollinger band, indicating it may be overbought.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 fell 1.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Information Technology industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 42.8% The company's stock price performance over the past 12 months lags the peer average by -205.8% This story was produced by the Kwhen Automated News Generator.
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Applied Optoelectronics Inc (AAOI) shares closed today at 1.3% above its 52 week low of $4.63, giving the company a market cap of $128M. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 fell 1.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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f12f1457-1004-4009-a0cb-d9ee5d567508
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9592.0
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2021-11-17 00:00:00 UTC
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Could The Applied Optoelectronics, Inc. (NASDAQ:AAOI) Ownership Structure Tell Us Something Useful?
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AAOI
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https://www.nasdaq.com/articles/could-the-applied-optoelectronics-inc.-nasdaq%3Aaaoi-ownership-structure-tell-us-something
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nan
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nan
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If you want to know who really controls Applied Optoelectronics, Inc. (NASDAQ:AAOI), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of US$164m, Applied Optoelectronics is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Applied Optoelectronics.
NasdaqGM:AAOI Ownership Breakdown November 17th 2021
What Does The Institutional Ownership Tell Us About Applied Optoelectronics?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Applied Optoelectronics already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Applied Optoelectronics' earnings history below. Of course, the future is what really matters.
NasdaqGM:AAOI Earnings and Revenue Growth November 17th 2021
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Applied Optoelectronics is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 11% of shares outstanding. With 5.1% and 3.6% of the shares outstanding respectively, The Vanguard Group, Inc. and Royce & Associates, LP are the second and third largest shareholders. In addition, we found that Chih-Hsiang Lin, the CEO has 2.2% of the shares allocated to their name.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Applied Optoelectronics
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can report that insiders do own shares in Applied Optoelectronics, Inc.. In their own names, insiders own US$7.2m worth of stock in the US$164m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 45% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Applied Optoelectronics better, we need to consider many other factors. For example, we've discovered 3 warning signs for Applied Optoelectronics that you should be aware of before investing here.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqGM:AAOI Earnings and Revenue Growth November 17th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. If you want to know who really controls Applied Optoelectronics, Inc. (NASDAQ:AAOI), then you'll have to look at the makeup of its share registry. NasdaqGM:AAOI Ownership Breakdown November 17th 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics?
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NasdaqGM:AAOI Ownership Breakdown November 17th 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics? NasdaqGM:AAOI Earnings and Revenue Growth November 17th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. If you want to know who really controls Applied Optoelectronics, Inc. (NASDAQ:AAOI), then you'll have to look at the makeup of its share registry.
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If you want to know who really controls Applied Optoelectronics, Inc. (NASDAQ:AAOI), then you'll have to look at the makeup of its share registry. NasdaqGM:AAOI Ownership Breakdown November 17th 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics? NasdaqGM:AAOI Earnings and Revenue Growth November 17th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences.
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If you want to know who really controls Applied Optoelectronics, Inc. (NASDAQ:AAOI), then you'll have to look at the makeup of its share registry. NasdaqGM:AAOI Ownership Breakdown November 17th 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics? NasdaqGM:AAOI Earnings and Revenue Growth November 17th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences.
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2021-11-05 00:00:00 UTC
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Applied Optoelectronics, inc (AAOI) Q3 2021 Earnings Call Transcript
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-aaoi-q3-2021-earnings-call-transcript-2021-11-05
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Image source: The Motley Fool.
Applied Optoelectronics, inc (NASDAQ: AAOI)
Q3 2021 Earnings Call
Nov 4, 2021, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to the Applied Optoelectronics Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I now would like to turn the call over to Lindsay Savarese, Investor Relations for AOI. Ms. Savarese, you may begin.
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Lindsay Grant Savarese -- Investor Relations
Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's Third Quarter 2021 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its third quarter 2021 financial results and provided its outlook for the fourth quarter of 2021. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year. Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer.
Thompson will give an overview of AOI's Q3 results, and Stefan will provide financial details and the outlook for the fourth quarter of 2021. A question-and-answer session will follow our prepared remarks. Before we begin, I would like to remind you to review AOI's safe harbor statements. On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties as well as assumptions and current expectations which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks and by other similar expressions that convey uncertainty of future events or outcomes.
Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovations as well as statements regarding the company's outlook for the fourth quarter of 2021. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of thisearnings callto conform these statements to actual results or to changes in the company's expectations. More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2020. Also, with the exception of revenue, all financials discussed today are on a non-GAAP basis unless specifically noted otherwise.
Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website. Before moving to the financial results, I'd like to announce that AOI management will virtually participate at the Needham Networking, Security and Communications Conference on November 16, the Raymond James Technology Investors Conference on December six through eight and the D.A. Davidson Semicap, Laser and Optical Conference on December 15. We hope to have the opportunity to interact with many of you virtually. Additionally, I'd like to note the date of our fourth quarter and full year 2021earnings callis currently scheduled for February 3, 2022.
Now I would like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics Founder, Chairman and CEO. Thompson?
Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board
Thank you, Lindsay. Thank you for joining our call today. The third quarter played out largely as we expected. We delivered in-line revenue and gross margin and a narrower non-GAAP net loss relative to our expectations. During the quarter, we continued to see strong demand in the CATV market and improving condition in the data center and telecom markets. However, as we anticipated, our revenue in the third quarter was adversely impacted by approximately $3 million as a result of the well-known global component shortage, and our Q3 gross margin came in at the low end of our expectations mostly due to the unfavorable product mix in our CATV segment and increased costs from component shortage.
We achieved total revenue for the third quarter of $53.3 million, which decreased 30.5% compared to the third quarter of 2020 and was down 1.7% sequentially. Total revenue in our CATV segment of $23.1 million was up 98.4% year-over-year but was down from a record $27.6 million in the second quarter of 2021. The overall CATV demand environment remains strong, and we continue to see good new customer traction with a number of our products. Total revenue for our data center product of $23.9 million decreased 56.8% year-over-year and increased 6.9% sequentially. During the third quarter, we secured nine design wins among seven customers. One of design wins in the quarter was a new 400G transceiver design win with an existing customer that is a network equipment manufacturer supplying enterprise and hyperscale data center customers.
In addition, two of design wins are related to 25G PON and are with a large multinational network equipment manufacturer focused on the telecom market. Now turning to our telecom segment. Revenue came in at $5.1 million, down 42% year-over-year and up 54.5% sequentially. While we are pleased to deliver sequential growth in this segment, during the third quarter, we see continued volatility in the market condition in the China telecom market as the timing and cadence of the 5G rollout there remains somewhat opaque. Looking ahead, we do expect quarter-to-quarter variability until the pace of 5G rollout in China becomes more predictable.
With that, I will turn the call over to Stefan to review the details of our Q3 performance and outlook for Q4. Stefan?
Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Thank you, Thompson. As Thompson mentioned, the third quarter played out largely as we expected, and we delivered revenue and gross margin in line with our expectations and a narrower non-GAAP net loss relative to our expectations due to slightly lower-than-expected operating expenses. During the quarter, we continued to see strong demand in the CATV market and improving conditions in the data center and telecom markets. However, as we anticipated, our results were adversely impacted by approximately $3 million due to the well-known component shortages and supply chain disruptions, and our Q3 gross margin came in at the low end of our expectations mostly due to unfavorable product mix in our CATV segment and increased costs from component shortages.
While we were able to mitigate some of these anticipated impacts, we saw additional component shortages later in the quarter due to the shutdown in Vietnam. As we work to improve our supply chain, we may continue to have longer-than-usual backlog for several quarters. Looking ahead, we expect that the component shortages could adversely affect our fourth quarter by approximately $2 million to $3 million. We also expect increased costs associated with the shortages to persist through Q4. Turning to our quarterly performance.
We secured nine new design wins among seven customers. Of the nine design wins, four were with data center customers, two were with telecom customers, two were with FTTH customers, and one was with a CATV customer. As Thompson mentioned, one of these design wins was a new 400G transceiver design win with a network equipment manufacturer supplying enterprise and hyperscale data center customers. In addition, two of the design wins are related to 25G PON and are with a large multinational network equipment manufacturer focused on the telecom market. All of the design wins in Q3 were with existing customers of AOI, so these design wins represent deeper penetration within our existing customer base. Total third quarter revenue of $53.3 million decreased 30.5% compared to the third quarter in the prior year and was down 1.7% sequentially.
Our Q3 revenue was in line with our guidance range of $51 million to $56 million. In the third quarter, 45% of our revenue was from our data center products, 43% from CATV products, with the remaining 12% from FTTH, telecom and other. In our CATV product segment, the overall demand environment remains very strong as MSOs, particularly in North America, continue to upgrade their networks. We generated revenue of $23.1 million in Q3, up 98.4% from $11.6 million in Q3 of the prior year and down 16.3% sequentially from record results in Q2 '21 due largely to the component shortages and reduced sales of certain node transmitter products as inventory rebuilding for these products has largely been completed by one of our customers. Notably, in early October, we virtually attended the Society for Cable Telecommunications Engineers or SCTE Expo.
Commentary from customers continues to be positive. Looking ahead, we have good visibility with CATV orders well into next year, and we continue to believe that our technologies will play a key part in MSOs' upgrade plans over the next several quarters. Notably, in the quarter, we began to see an increase in orders associated with so-called high-split upgrades, which several MSOs are using to increase CATV network bandwidth. Our amplifier products and certain of our node products are used in these high-split networks, and we are seeing particular order strength in this area. Our Q3 data center revenue came in at $23.9 million compared to $55.3 million in the third quarter of the prior year.
In the third quarter, 36% of our data center revenue was from our 40G transceiver products and 57% was from our 100G products. Our data center revenue was up 6.9% sequentially. We remain optimistic about our ability to see sequential growth in the data center in the second half of this year. However, we are seeing some supply constraints that are beginning to impact other parts of the 400G ecosystem, which may in turn impact the timing of the 400G rollout. And this may limit the extent of the sequential growth we can see in the back half of this year. Now turning to our telecom segment. Revenue from our telecom products of $5.1 million increased 54.5% sequentially and declined 42% from $8.9 million in Q3 of the prior year. While we are pleased to deliver sequential growth in this segment during the third quarter, we see market conditions in the China telecom market as continuing to be lumpy as the timing and cadence of the 5G rollout there remains somewhat opaque.
Looking ahead, we do expect quarter-to-quarter variability until the pace of 5G rollouts in China becomes more predictable. Also, we are excited about the design wins in 25G PON that I mentioned earlier as over time, this will provide an additional growth driver to our FTTH revenue. For the third quarter, our top 10 customers represented 86% of revenue, up from 84.9% in Q3 of the prior year. We had two 10% or greater customers in the third quarter, one in the CATV market and one in the data center market. These customers contributed 29.4% and 15.5% of total revenue, respectively. In Q3, we generated non-GAAP gross margin of 19.9%, which was at the low end of our guidance range of 19.5% to 21.5% and was down from 25% in Q2 of 2021 and 27.4% in Q3 of 2020. Total non-GAAP operating expenses in the third quarter were $19.3 million or 36.3% of revenue compared with $22.3 million or 29.1% of revenue in Q3 of the prior year.
The reduction in operating expenses is due to a decrease in R&D spend as some of the costs associated with our 400G development have begun to subside along with decreased shipping expenses due to lower shipments to one of our customers. Non-GAAP operating loss in the third quarter was $8.7 million compared to an operating loss of $1.3 million in Q3 in the prior year. GAAP net loss for Q3 was $15.8 million or a loss of $0.58 per basic share compared with a GAAP net loss of $9.6 million or a loss of $0.42 per basic share in Q3 of 2020. On a non-GAAP basis, net loss for Q3 was $5.3 million or a loss of $0.20 per basic share, which was better than our guidance range of a loss of $6.9 million to $9 million or a loss in the range of $0.25 to $0.33 per basic share due to lower operating expenses than forecast and compares to a net loss of $1.4 million or a loss of $0.06 per basic share in Q3 of the prior year.
The basic shares outstanding used for computing the net loss in Q3 were 27.1 million. Turning now to the balance sheet. We ended the third quarter with $48.9 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $50.5 million at the end of the second quarter. As of September 30, we had $94.5 million in inventory compared to $100.4 million at the end of Q2. Inventory decreased primarily due to utilization of inventory for customer orders. This inventory reduction is consistent with our long-term plan as we focus on rationalizing inventory levels. We made a total of $3.8 million in capital investments in the third quarter, including $3.4 million in production equipment and machinery and an immaterial amount on construction and building improvements.
We now expect 2021 capex will be approximately $15 million. As we disclosed in February of this year, we initiated a new at-the-market offering. To date, we have raised $1 million under this new program, including $0.1 million raised in Q3. We intend to use these proceeds to continue to make investments in the business, including new equipment and machinery for production and research and development use. Moving now to our Q4 outlook. We expect Q4 revenue to be between $51 million and $55 million and non-GAAP gross margin to be in the range of 18.5% to 20%. Non-GAAP net loss is expected to be in the range of $5.5 million to $6.6 million and non-GAAP loss per basic share between $0.20 and $0.24, using a weighted average basic share count of approximately 27.4 million shares.
With that, I will turn it back over to the operator for the Q&A session. Operator?
Questions and Answers:
Operator
[Operator Instructions] And the first question comes from Simon Leopold with Raymond James.
Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst
Thank you for taking my question. This is Mauricio for Simon today. Stefan, can you please give us an update on your traction with your 400-gig opportunity? I think you previously disclosed expectations for 400-gig to ramp on the third quarter and become more meaningful in the fourth quarter. Maybe you can elaborate on the 400-gig traction this quarter? And how should we think about the opportunity going forward?
Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yes. So as we noted in our prepared remarks, what we've seen is that there -- at least one of our customers, one of the early customers that qualified our 400G products has -- seems to be seeing some component shortages in other parts of the 400G network. That is, it's not optical products, it's not AOI's inability to supply those products, but they're seeing shortages of some other component that's making it difficult for them to ramp their 400G efforts as quickly as they would like. So as we noted in our prepared remarks, we continue to expect to see growth overall in the data center market, but the 400G rollout, maybe a little bit later depending how long the supply disruption that they're seeing lasts.
Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst
Thank you.
Operator
[Operator Instructions] All right, as there is nothing else at the present time, I would like to hand the floor to Dr. Thompson Lin for any closing comments.
Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board
Okay. Thank you for joining us today. We want to extend thanks to our investors, customers and employees for your continued support. And we look forward to seeing many of you virtually at our upcoming investment conference.
Operator
[Operator Closing Remarks].
Duration: 21 minutes
Call participants:
Lindsay Grant Savarese -- Investor Relations
Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board
Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst
More AAOI analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, inc (NASDAQ: AAOI) Q3 2021 Earnings Call Nov 4, 2021, 4:30 p.m. Duration: 21 minutes Call participants: Lindsay Grant Savarese -- Investor Relations Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks and by other similar expressions that convey uncertainty of future events or outcomes.
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Duration: 21 minutes Call participants: Lindsay Grant Savarese -- Investor Relations Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics, inc (NASDAQ: AAOI) Q3 2021 Earnings Call Nov 4, 2021, 4:30 p.m. Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer.
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Duration: 21 minutes Call participants: Lindsay Grant Savarese -- Investor Relations Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics, inc (NASDAQ: AAOI) Q3 2021 Earnings Call Nov 4, 2021, 4:30 p.m. Total non-GAAP operating expenses in the third quarter were $19.3 million or 36.3% of revenue compared with $22.3 million or 29.1% of revenue in Q3 of the prior year.
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Duration: 21 minutes Call participants: Lindsay Grant Savarese -- Investor Relations Dr. Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman of the Board Dr. Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Mauricio Alberto Munoz Roldan -- Raymond James & Associates, Inc -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics, inc (NASDAQ: AAOI) Q3 2021 Earnings Call Nov 4, 2021, 4:30 p.m. Looking ahead, we expect that the component shortages could adversely affect our fourth quarter by approximately $2 million to $3 million.
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2021-10-03 00:00:00 UTC
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The past three years for Applied Optoelectronics (NASDAQ:AAOI) investors has not been profitable
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AAOI
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https://www.nasdaq.com/articles/the-past-three-years-for-applied-optoelectronics-nasdaq%3Aaaoi-investors-has-not-been
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It's not possible to invest over long periods without making some bad investments. But really bad investments should be rare. So take a moment to sympathize with the long term shareholders of Applied Optoelectronics, Inc. (NASDAQ:AAOI), who have seen the share price tank a massive 70% over a three year period. That would be a disturbing experience. And more recent buyers are having a tough time too, with a drop of 37% in the last year. Furthermore, it's down 14% in about a quarter. That's not much fun for holders.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
Because Applied Optoelectronics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last three years, Applied Optoelectronics' revenue dropped 9.4% per year. That's not what investors generally want to see. The share price fall of 19% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. This business clearly needs to grow revenues if it is to perform as investors hope. Don't let a share price decline ruin your calm. You make better decisions when you're calm.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
NasdaqGM:AAOI Earnings and Revenue Growth October 3rd 2021
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Applied Optoelectronics
A Different Perspective
While the broader market gained around 32% in the last year, Applied Optoelectronics shareholders lost 37%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 11% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Applied Optoelectronics better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Applied Optoelectronics you should know about.
Applied Optoelectronics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So take a moment to sympathize with the long term shareholders of Applied Optoelectronics, Inc. (NASDAQ:AAOI), who have seen the share price tank a massive 70% over a three year period. NasdaqGM:AAOI Earnings and Revenue Growth October 3rd 2021 We consider it positive that insiders have made significant purchases in the last year. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.
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So take a moment to sympathize with the long term shareholders of Applied Optoelectronics, Inc. (NASDAQ:AAOI), who have seen the share price tank a massive 70% over a three year period. NasdaqGM:AAOI Earnings and Revenue Growth October 3rd 2021 We consider it positive that insiders have made significant purchases in the last year. Over the last three years, Applied Optoelectronics' revenue dropped 9.4% per year.
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So take a moment to sympathize with the long term shareholders of Applied Optoelectronics, Inc. (NASDAQ:AAOI), who have seen the share price tank a massive 70% over a three year period. NasdaqGM:AAOI Earnings and Revenue Growth October 3rd 2021 We consider it positive that insiders have made significant purchases in the last year. Over the last three years, Applied Optoelectronics' revenue dropped 9.4% per year.
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So take a moment to sympathize with the long term shareholders of Applied Optoelectronics, Inc. (NASDAQ:AAOI), who have seen the share price tank a massive 70% over a three year period. NasdaqGM:AAOI Earnings and Revenue Growth October 3rd 2021 We consider it positive that insiders have made significant purchases in the last year. Because Applied Optoelectronics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now.
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2021-08-19 00:00:00 UTC
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Applied Optoelectronics (NASDAQ:AAOI) Is Making Moderate Use Of Debt
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https://www.nasdaq.com/articles/applied-optoelectronics-nasdaq%3Aaaoi-is-making-moderate-use-of-debt-2021-08-19
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Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. But should shareholders be worried about its use of debt?
When Is Debt Dangerous?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
What Is Applied Optoelectronics's Net Debt?
The chart below, which you can click on for greater detail, shows that Applied Optoelectronics had US$146.0m in debt in June 2021; about the same as the year before. However, it does have US$44.0m in cash offsetting this, leading to net debt of about US$102.0m.
NasdaqGM:AAOI Debt to Equity History August 19th 2021
How Strong Is Applied Optoelectronics' Balance Sheet?
The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$90.5m due within a year, and liabilities of US$105.4m falling due after that. On the other hand, it had cash of US$44.0m and US$52.2m worth of receivables due within a year. So it has liabilities totalling US$99.6m more than its cash and near-term receivables, combined.
While this might seem like a lot, it is not so bad since Applied Optoelectronics has a market capitalization of US$181.6m, and so it could probably strengthen its balance sheet by raising capital if it needed to. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Applied Optoelectronics can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
In the last year Applied Optoelectronics wasn't profitable at an EBIT level, but managed to grow its revenue by 16%, to US$233m. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
Caveat Emptor
Importantly, Applied Optoelectronics had an earnings before interest and tax (EBIT) loss over the last year. Its EBIT loss was a whopping US$48m. Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt. So we think its balance sheet is a little strained, though not beyond repair. Another cause for caution is that is bled US$49m in negative free cash flow over the last twelve months. So suffice it to say we consider the stock very risky. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. For example - Applied Optoelectronics has 4 warning signs we think you should be aware of.
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. NasdaqGM:AAOI Debt to Equity History August 19th 2021 How Strong Is Applied Optoelectronics' Balance Sheet? Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price.
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We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. NasdaqGM:AAOI Debt to Equity History August 19th 2021 How Strong Is Applied Optoelectronics' Balance Sheet? The latest balance sheet data shows that Applied Optoelectronics had liabilities of US$90.5m due within a year, and liabilities of US$105.4m falling due after that.
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NasdaqGM:AAOI Debt to Equity History August 19th 2021 How Strong Is Applied Optoelectronics' Balance Sheet? We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
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We can see that Applied Optoelectronics, Inc. (NASDAQ:AAOI) does use debt in its business. NasdaqGM:AAOI Debt to Equity History August 19th 2021 How Strong Is Applied Optoelectronics' Balance Sheet? What Is Applied Optoelectronics's Net Debt?
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2021-08-06 00:00:00 UTC
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Applied Optoelectronics, inc (AAOI) Q2 2021 Earnings Call Transcript
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-aaoi-q2-2021-earnings-call-transcript-2021-08-06
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Image source: The Motley Fool.
Applied Optoelectronics, inc (NASDAQ: AAOI)
Q2 2021 Earnings Call
Aug 5, 2021, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon. My name is Chris and I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics Second Quarter 2021 Earnings Conference Call. Today, all participants have been placed on mute to prevent any background noise. [Operator Instructions] Please note that this call is being recorded.
I would now like to turn the call over to Lindsay Savarese, Investor Relations for AOI. Ms. Savarese, you may begin.
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Lindsay Savarese -- Investor Relations
Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's second quarter 2021 financial results conference call. After the market closed today, AOI issued a press release announcing its second quarter 2021 financial results and provided its outlook for the third quarter of 2021.The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year.
Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman, and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer. Thompson will give an overview of AOI's Q2 results and Stefan will provide financial details and the outlook for the third quarter of 2021. A question-and-answer session will follow our prepared remarks.Before we begin, I would like to remind you to review AOI's Safe Harbor statements. On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements.
In some cases, you can identify forward-looking statements by terminology such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks and by other similar expressions that convey uncertainty of future events or outcomes.Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovations, as well as statements regarding the company's outlook for the third quarter of 2021.
Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of thisearnings callto conform these statements to actual results or to changes in the company's expectations.More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2020.Also, with the exception of revenue, all financials discussed today are on a non-GAAP basis, unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures, as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website.
Before moving to the financial results, I'd like to announce that AOI management will virtually participate in one-on-one meetings at the Jefferies Semiconductor IT Hardware and Communications Infrastructure Summit on August 31. We hope to have the opportunity to interact with many of you virtually. Additionally, I'd like to note that the date of our third quarter 2021earnings callis currently scheduled for November 4, 2021.
Now, I would like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics Founder, Chairman, and CEO. Thompson?
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Thank you, Lindsay. Thank you for joining us today. We delivered revenue and non-GAAP EPS in line with our expectations. However, our gross margin came in slightly below our expectations mostly due to our unfavorable product mix in our CATV segment at increased cost from the component shortage we experienced in the quarter.Total revenue for the second quarter of $54.2 million decreased 16.9%, compared to a strong second quarter in the prior year, but was up 9% sequentially. The strong sequential growth was led by our CATV segment, which this quarter decreased our data center business, accounting for 51% of total revenue to our CATV demand environment remained strong as MSO particularly in North America continued to upgrade their network.
Total revenue for our CATV products increased more than four-fold year-over-year in Q2, an increase 48.1% sequentially of a strong fourth quarter to a record $27.6 million. As we expected, we experienced generally soft Q2 conditions in the data center segments. As a result, total revenue for our data center products of $22.4 million decreased 57.4% year-over-year and 13.7% sequentially.We are pleased to report that with Q2 new design wins with two customers for our 400G products during Q2. In addition to the design wins, we had five technical qualification of our 400G products, which Stefan will discuss in more detail. We are encouraged by the traction we are seeing with our 400G products as our customers start to degrade.
We expect the order will continue as our customers start to realize the benefit or performance of our 400G solution. Based on this, we continue to expect our data center business to begin to increase in the second half of the year as our customer begin 400G upgrades and inventory issue around 100G normalize.Turning to our telecom segment, while we do see early sign of a recovery in Q1 we saw mixed condition in Q2, with some customer present new order, while others continue to use existing inventory. Overall, with the market condition in the China Telecom markets is continuing to repeat as the timing and cadence of the 5G rollout there remain somewhat opaque. As a result, revenue from our telecom products of $3.3 million was down 46% year-over-year and 25.6% sequentially.
Looking ahead, we believe China will continue to make investment in both their 5G and fiber-to-the-home infrastructure and we expect higher revenue in the segment in the second half of this year, compared to first half.With that, I will turn the call over to Stefan to review the details of our Q2 performance and outlook for Q3. Stefan?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Thank you, Thompson. As Thompson mentioned, we delivered revenue and non-GAAP EPS in-line with our expectations. However, our gross margin came in below our expectations, mostly due to unfavorable product mix in our CATV segment, and increased costs associated with the component shortages we saw during the quarter.While we continued to see softness in the data center market, and conditions in the China 5G market remained somewhat soft, we are pleased with the continued strength and record results we are seeing in the CATV market. And looking ahead, we are encouraged by the traction we are seeing with our 400G products, which we believe will drive growth in our data center business as order volumes ramp later in the year.
Notably, we are pleased to report that we secured two design wins for our 400G products during Q2. In total for the second quarter, we secured three new design wins among three customers, all of which are existing AOI customers. All three of the design winds were in our data center business, and two of the three were for 400G, which I'll discuss in more detail shortly.Total revenue of $54.2 million decreased 16.9%, compared to a strong second quarter in the prior year, and was up 9% sequentially. Our Q2 revenue was in-line with our guidance range of $51 million to $56 million. As we expected, the headwinds we saw in Q1 continued into the second quarter in the data center market related to the inventory normalization that followed the shift to working from home early last year.
We believe these headwinds will begin to subside in the second half of the year, driven by several of our customers who will begin to ramp 400G deployments. Additionally, we believe that inventory conditions in our 100G business will begin to normalize later in the year.On the 400G front, as Thompson and I mentioned, we secured two new design wins with two customers for our 400G products during Q2. One of the design wins was with a data center equipment manufacturer, and the other was with the hyperscale data center operator, both are U.S. based companies and both our existing AOI customers.
As a reminder, for AOI, a design win occurs when we have successfully completed both the technical qualification of the product, as well as received an initial order from the customer.In addition to these two design wins, we also have successfully completed technical qualifications on five other 400G opportunities.We are optimistic that many of these qualifications will become design wins in the near future once we receive orders for these products from our customers. The technical qualifications are with two different data center operators and the data center equipment OEM. All are U.S. based companies. We are encouraged by the traction we are seeing and expect that 400G will begin its ramp with us later in Q3.
In the second quarter, 51% of our revenue was from CATV products. 41% was from our data center products, with the remaining 8% from FTTH, telecom, and other. In our CATV product segment, the overall demand environment remains very strong, as MSOs, particularly in North America continue to upgrade their networks.We generated revenue of $27.6 million in Q2, up 48.1% sequentially, and up 349% from $6.1 million in Q2 of the prior year. We are still seeing component shortages in our CATV business and we continue to work with our suppliers to improve delivery schedules for these critical components, and in some cases, adding additional suppliers.
We anticipate that these shortages will adversely affect our third quarter revenue by about $3 million. As we work to improve our supply chain, we may continue to have a longer than usual backlog for several quarters. Our Q2 data center revenue came in at $22.4 million, compared with $52.5 million in the second quarter of the prior year. In the second quarter, 33% of our data center revenue was from our 40G transceiver products, and 59% was from our 100G products.Turning to our telecom segment, revenue from our telecom products of $3.3 million decreased 25.6% sequentially, primarily driven by continued slow demand in China for 5G upgrades there, and 46% from $6.2 million in Q2 of the prior year. Looking ahead, we continue to believe China will increase investments in both their 5G and FTTH infrastructure. And we believe we are well-positioned to sell lasers into both of these markets.
For the second quarter, our Top 10 customers represented 86.8% of revenue, consistent with the 86.9% in Q2 of the prior year. We had four 10% or greater customers in the second quarter, two of which were in the data center market, and two of which were in the CATV market. These customers contributed 24.1%, 21.3%, 11.2%, and 10.9% of total revenue respectively.In Q2, we generated non-GAAP gross margin of 25%, which was below our guidance range of 25.5% to 27.5% for the reasons I mentioned previously, and compared favorably to 23.1% in Q2 of the prior year. We expect the downward pressure on gross margin due to unfavorable product mix in our CATV segment to persist through Q3 before starting to recover to a more normal mix in Q4.
We are currently uncertain when the increased costs due to supply chain disruptions will subside, but we also see them persisting through Q3, which will also negatively affect gross margin. Total non-GAAP operating expenses in the second quarter were $20 million or 36.9% of revenue, compared with $20.6 million or 31.6% of revenue in Q2 of the prior year. Non-GAAP operating loss in the second quarter was $6.5 million, compared to an operating loss of $5.6 million in Q2 of the prior year.GAAP net loss for Q2 was $8.2 million or a loss of $0.31 per basic share, compared with a GAAP net loss of $18.6 million or a loss of $0.89 per basic share in Q2 of 2020. On a non-GAAP basis, net loss for Q2 was $4.1 million or loss of $0.15 per basic share, which was in line with our guidance range of a loss of $3.8 million to $5.6 million, or a loss in the range of $0.14 to $0.21 per basic share, and compares to a net loss of $5 million or a loss of $0.24 per basic share in Q2 of the prior here. The basic shares outstanding used for computing the net loss in Q2 were 26.9 million.
Turning now to the balance sheet, we ended the second quarter with $50.5 million in total cash, cash equivalents, short-term investments, and restricted cash. This compares with $49.3 million at the end of the first quarter, and reflects $5.9 million in cash used for operations. As of June 30, we had $100.4 million in inventory, compared to $106.3 million at the end of Q1. Inventory decreased primarily due to utilization of inventory for customer orders. This inventory reduction is consistent with our long-term plan, as we focus on rationalizing inventory levels.We made a total of $3.2 million in capital investments in the second quarter, including $2.9 million in production equipment and machinery and an immaterial amount on construction and building improvements. We continue to expect 2021 capex will be approximately $16 million. Although as we have noted in prior years, there can be significant variability in this estimate as the year progresses.
As we disclosed in February of this year, we initiated a new at the market offering. To date we have raised $0.9 million under this new program. We intend to use these proceeds to continue to make investments in the business, including new equipment and machinery for production and research and development use.Moving now to our Q3 outlook, we expect Q3 revenue to be between $51 million and $56 million, and non-GAAP gross margin to be in the range of 19.5% to 21.5%. Non-GAAP net loss is expected to be in the range of $6.9 million to $9 million and non-GAAP loss per basic share between $0.25 and $0.33, using a weighted average basic share account of approximately 27.7 million shares.
With that, I'll turn it back over to the operator for the Q&A session. Operator?
Questions and Answers:
Operator
[Operator Instructions] Today's first question comes from Simon Leopold with Raymond James. Please proceed.
Simon Leopold -- Raymond James -- Analyst
Thanks for taking the question. I want to start out first just, if you could clarify the CATV headwind, you quantified it as $3 million headwind due to supply constraints, I guess there are a couple ways one could interpret that, but I think what I'm imagining you're suggesting is, looking at this quarter sales of roughly 27.5 million and subtracting 3 million from that. But alternatively, I could sort of think of hey, I was imagining it would be 30, but with 3 million of headwinds, it'll be 27. So, I guess I'm trying to understand the baseline or maybe a little bit finer details, the impact of that headwind, you highlighted.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah, Simon, thanks for bringing that up. So, I think the answer is, it's more like the ladder scenario that you had, not necessarily that those numbers are what we had in mind, but what we were saying is that, relative to what we could otherwise deliver that is based on orders and requested delivery schedules, and you know, shipping schedules and all that, we could have delivered $3 million more in our cable TV segment, but for the fact that those raw materials are constrained at this point.
Simon Leopold -- Raymond James -- Analyst
And let me just clarify that, is that 3 million hit in the June quarter or is that 3 million headwind your forecast for September?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
It's forecast for the September quarter. So, we're saying in the next quarter, in the third quarter, the one that we're in currently, we would have been able to deliver based on our current forecast, approximately $3 million more revenue than we now believe that we can do to component shortages.
Simon Leopold -- Raymond James -- Analyst
Right. And I want to see if maybe you could help us understand how to think about your opportunities in the 400 gig market, and where you see, essentially, competing with ZR products, because I imagine there's, you know your products are probably cheaper than the ZRs, but have shorter reach. And so just trying to get a better idea of how you're thinking about sizing that market opportunity in, let's say, 2022?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Sure. So, first of all, I mean, we're pretty excited about the progress that we made in the 400 gig market, we highlighted the not only the two design wins that we had in the quarter, but also the fact that we have five technical qualifications, which, as we noted is as a significant milestone, I would say the technical qualification is typically the biggest hurdle to get over, in logging a design win.
The remaining hurdle would be really just receiving an order, which typically involves, you know, getting set up with proper purchasing codes and negotiating some pricing and things like that. So, those hurdles are relatively low. The technical qualification is really the key piece that I think typically takes the longest. So, we're pretty excited about the progress that we had with those two design wins and the five technical qualifications.
With respect to your question about, you know, kind of where we fit in, in the ecosystem, I think, as you mentioned, our products are positioned to be a lower cost version of 400 gig that can be used primarily in intra data center applications. So, you know, it distances up to a couple of kilometers, as opposed to longer distances in that, which is where ZR is typically targeted.
Now, ZR, of course, will work at shorter distances, but at a higher price, as you noted. And as far as you know, the market sizing for next year, you know, I can point you to some third party estimates and things like that, for the overall market size, I think what we're hearing from our particular customer base is that they're going to, you know, begin implementing 400 gig later in the third quarter and into the fourth quarter.
My anticipation is that that'll be a relatively slow, incremental ramp throughout that time, because that's typically how it goes with these customers, when they try to implement a new technology like 400 gig. They don't instantly, you know, start to implement that technology, they put it in incrementally, test it, make sure everything's working as expected, and then begin to ramp up after that.
So, this kind of two phase ramp is what I would expect there. And the second phase, which would probably be a stronger ramp is probably sometime in the middle part of next year.
Simon Leopold -- Raymond James -- Analyst
Right. And then just maybe a quick one, if I might is, we've seen awards coming out of China for 5G technology, there was the 700 megahertz award a few weeks ago, and then more recently, China Unicom and Telecom made tenders for RAN, just wondering how we can maybe look at those events in terms of helping, give us some sense of when your China business related to the 5G backhaul, front haul should improve?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah, that's a great question, Simon. I mean, the 5G market is a little bit hard to make out right now. As we noted in our earlier remarks, some of our customers in China have begun ordering more products from us, which implies that their inventory levels are down to, you know, whatever level they think is comfortable, and they're placing new orders. Other customers haven't yet started to place those new orders yet.
So, I think we're, I my, the way I'm interpreting that is that we're in a period where new orders are starting to flow from or either new orders are starting to flow from the carriers like China Telecom and China Unicom or that there's line of sight to those new orders and some of our vendors are getting ready while other vendors probably still have some buffer inventory that they want to draw down before they start to place new orders.
So, it feels like that should start to turn with more of our customers in this quarter or certainly by the fourth quarter, and the data points that you gave around the new bandwidth awards and new product orders coming out of China Telecom and China Unicom, I think those are significant data points that point also in that direction of a gradual recovery in the next quarter or two.
Simon Leopold -- Raymond James -- Analyst
Thanks for taking my questions.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
My pleasure.
Operator
The next question comes from Alex Henderson with Needham.
Alex Henderson -- Needham -- Analyst
Thanks. Stefan, can you give us a little bit of a granularity around, you know, what's your thoughts are between the data center and CATV and the guide for 3Q? What are we assuming there? Is the spike up in 2Q an abnormal spike, and it's going to stabilize or decline sequentially back to a more normalized growth or revenue level or is that a new base that will be growing the CATV? And, you know, clearly, it's nice getting 400 gig wins, but the data center business declining sequentially into what is normally a seasonally strong quarter, is that now a trend line where it's you should expect the 40 gig to roll over a little bit faster, going forward as people don't want, you know, 40 good products in their you know, to put new into their networks or a little out there?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Sure. So, I'll take your first question first, which is, you know, what's the trajectory for cable TV? As I noted in our prepared remarks, our cable TV revenue is limited over the next quarter or perhaps beyond by component availability. And we talked about the magnitude of that in the third quarter being about $3 million. So, you can get a pretty good picture that, you know, at least in Q3, and I would say that, you know, after that, in subsequent quarters after that, depending on component availability, we should be at about that level as well.
So, I think we're kind of at a new, a new level in cable TV, and there's opportunities to grow from there, particularly as we overcome some of these supply constraints, which is currently the limiting factor to deliver revenue there. At the same time, then your second question is about, you know, the trajectory in datacom, and I do think Q2 probably represents the low point in datacom revenue for us, at least the local minimum. That is, I think we'll see some incremental improvement in data calm.
And as we noted in our prepared remarks, that's going to be driven by two factors. One is the 400G design wins and our beginning that first phase ramp that I spoke with Simon about earlier in the 400G business. And at the same time, I also expect to see some recovery in our 100G business, as some of the customers that had previously purchased inventory are finally getting that inventory back down to a level that they think is appropriate to begin placing new orders. So, those two factors, I think, can drive some incremental growth in the data center business.
Alex Henderson -- Needham -- Analyst
So, it sounds like data center up modestly a couple of million dollars, you're talking about the other ones probably Telecom, that sounds like it's up a little bit sequentially off of a fairly low base. So, that would suggest that you do expect a little bit of a retrenchment in the CATV to get to your guide, I would assume?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yes, that's correct. And we highlighted that that's largely due to component shortages.
Alex Henderson -- Needham -- Analyst
Okay. I get it. That's perfect. I wanted to go back to the inventory, your inventory carry rate is very high relative to, you know, to your revenue base, and relative to industry standards. And I get it that in this environment, that's probably not a bad thing, but do we have any concerns about having potentially any issues of having too much of, say, older product, or lower speed products that might not be applicable to the future demand picture? Do you have the right inventory in that mix?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I think we do. You know, if you remember, in some prior quarters, we've talked a lot about the fact that our 400G platform and our 100G platform and our 40G platform share a lot of commonality in terms of the design and the parts. And so, you know, to that extent, there's inventory of raw materials and things that may have been applicable to even 40G products that we could still continue to use in 100G and certainly, you know, cable TV, well, some of the older generation products, maybe slower selling than the current stuff. There's still a lot of demand even for older generation products.
So, we feel pretty good about the inventory that we have. I should say, we feel good about the quality of the inventory that we have. Now, your point about inventory level being high is well taken. We did bulk-up on inventory quite a bit in the, actually even prior to COVID in the Chinese New Year period going back last spring. And, you know, I think that that probably, you know, we probably got a little bit out of ahead of our SKUs in terms of the amount of inventory that we have.
To your point, it's comforting to have that inventory around with all the uncertainties that we've endured in the last year. But we do want to continue to draw that inventory level down. We've made some significant progress in that regard. I mean, we've pulled our inventory, I think it maxed out at around $113 million, and we're down to just about $100 million at the end of the quarter. So, I mean, that's good progress. I want to continue to make progress on that regard. And bring that inventory level down to a number that I think would be, you know, more appropriate for the business, which is probably in the $80 million vicinity.
Alex Henderson -- Needham -- Analyst
One technical question, you said the 0.9 million of mark to market at the market issued, was that shares or was that revenue? You know the cash in.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
That's dollars. That's the amount of net proceeds for.
Alex Henderson -- Needham -- Analyst
For the dollar? Okay. Thanks.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
All right, Alex. Thank you.
Operator
The next question comes from Sam Peterman with Craig-Hallum.
Sam Peterman -- Craig-Hallum -- Analyst
Hi, guys. Sam on for Richard here. Couple questions. I think I'll start with data center. I know you guys have talked about, you know, inventory burns ending in the second quarter and starting to recover from there, which looks like it's going to happen, but, you know, even given that data centers down looks like a little bit more than expected. I mean, was there, kind of worse inventory burns than expected, or something else in data center that can kind of explain the weakness there this quarter?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Well, I don't think that the weaknesses is, kind of a long-term thing. It has to do with just the confluence of order patterns across a couple of different customers. And, you know, as we, as we discussed, I think that probably represents a local minimum in terms of, you know, data center revenue. And I think, you know, the catalyst going forward is again, you know, inventory normalization with our 100G customers, especially one of our large 100G customers, as well as some headwinds, or excuse me, some tailwinds from the 400 gig, as that starts to ramp.
Sam Peterman -- Craig-Hallum -- Analyst
Okay, fair enough. Second question on 400 gig, I'm curious what those five technical qualifications that you talked about, are those with new customers or existing customers, or can you break that down?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
All of the 400 gig technical qualifications are with existing customers.
Sam Peterman -- Craig-Hallum -- Analyst
Okay, great. Thank you. And then last one for me on cable TV. I know, I think last call you talked about having, you know, visibility in the order book out through the end of the year. I know, you know, supply constraints are going to cap that a bit, but can you talk about where you sit in terms of visibility today? And if that order books is extending out in the next year at all, and yeah any color there would be helpful?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yes, the order book is extending out in the next year. The component availability situation, I mean, I was listening in on CommScope's call, and they're saying similar things about component availability. So, I think it's, kind of an industry wide trend. So, we're not seeing customers, sort of pulling back on orders and shifting order patterns. I think it's quite the contrary, what we're experiencing is that customers are, you know, working with us to try to pull in inventory as quickly as they can, rather than, you know, trying to move orders to somebody else or something.
Sam Peterman -- Craig-Hallum -- Analyst
Okay, great. Thanks. That's all for me.
Operator
[Operator Instructions] Our next question comes from Dave Kang with B. Riley.
Dave Kang -- B. Riley -- Analyst
Thank you. Good afternoon. My first question is on gross margin. Revenue is going to be, kind of flattish sequentially in third quarter and yet you're expecting gross margin to decline by five points sequentially, can you just go over some of the factors?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Sure, there's two factors. One is, some product mix within our cable TV segment, just you know, different customers, sort of waxing and waning in terms of what they're buying. And then the other factor is, is related to the component shortages that we're experiencing. And so we are experiencing increased costs as we try to pull in those components. So, we're paying, for example, expedite fees to suppliers, we're in some cases, qualifying new suppliers that may even be higher cost suppliers just because they have availability, things like that, that are also negatively impacting our gross margin in the quarter.
So, we discussed that we think that the cable TV mix is probably a one quarter thing. I think it'll shift more back toward, you know, more favorable product mix in the fourth quarter. The component availability is a little bit unclear how long that is going to last. I think it'll certainly last through the third quarter. It may last into the fourth quarter, but it's not totally clear exactly how fast we're going to be able to recover from that.
It's a very fluid situation. Some of those component availability situations are caused by for example, COVID shutdowns in certain parts of the world where suppliers have factories and things, and those how those things play out, in terms of timing is a little bit difficult to project at this point. But I think it's fair to say it, it should persist through the third quarter and hopefully, we'll find ways around it in the fourth quarter, but it's not totally clear at this point.
Dave Kang -- B. Riley -- Analyst
Regarding component shortages, is it just mainly in cable TV, I mean, you're not experiencing a similar situation in the data center market?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah, and I think a lot of that has to do with the inventory that we talked about earlier. I mean, Alex had a very good point that our inventory levels are rather elevated. And that's the point that we've made also on our last few calls. You know that's a double-edged sword, of course, we're tying up cash.
And there's always some risk of obsolescence, although, as I mentioned, in response to Alex's question, I don't think that's a major concern for us at this point. But, the bright side to that is that, you know, if you do have inventory, then you're not as likely to suffer from supply shortages.
So, in the data center business where we have, you know, a longer history and a more, you know, a better track record in terms of order patterns, we were able to bulk up on those products ahead of Chinese New Year last year, and that inventory is continuing to help us out when it comes to component shortages in the present time.
The cable TV, part of our business, as you can appreciate, was significantly smaller a year ago, and we didn't have the same bulk of inventory going into, you know, going from pre-COVID times into, you know, the first or second quarter of last year. And therefore, you know, we don't have that same cushion of inventory there. And that's where we're, sort of scrambling to try to find the inventory that we need to continue to grow the revenue in that segment.
Dave Kang -- B. Riley -- Analyst
Okay. And my last question is on 400 gig. I'm trying to, kind of gauge what kind of trajectory we should be expecting. First of all, just wanted to clarify, do you say did you say 400 gig will ramp end of third quarter or fourth quarter? And then, you know, like, can you just talk about your expectations? Maybe when does it become -- 20% of revenues?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
So, I think I said that the 400 gig will start to ramp at the end of the third quarter, which means it's probably not going to be a big amount of revenue in the third quarter, but it should start to, you know, start to become, you know, more meaningful in the fourth quarter. I did also highlight in answer to, I believe it was Simon's question earlier that we typically see in these scenarios, a sort of two phase ramp, right.
So, there's an initial phase of ramp, where we go from zero to some relatively small number that's associated with initial orders from customers who are trying out, you know, putting these products into their actual live networks and making sure that they perform as well in that environment as they did in all the lab testing that they've been doing in the qualification phase. They tend to be, you know, appropriately circumspect when it comes to ordering in that first phase. And then once they become more comfortable that everything's working correctly, then there's the second phase where the ramp becomes more substantial and we expect that phase will probably be sometime in the middle part of next year.
Dave Kang -- B. Riley -- Analyst
And if I can just squeeze in one more regarding 400 gig, how should we think about margins between 100 gig versus 400 gig?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Broadly similar, there can be variations in gross margin among that product family either the 100 gig or 400 gig based on the particular, you know, the particular customers and the particular types of transceivers that are being ordered. But overall, I would expect the margins to be, you know, broadly similar between 100 gig and 400 gig.
Dave Kang -- B. Riley -- Analyst
Got it. Thank you.
Operator
The next question comes from Tim Savageaux with Northland Capital Markets.
Tim Savageaux -- Northland Capital Markets -- Analyst
Good afternoon. Not a lot left here, but maybe I'll follow up on 400 gig timing and maybe, kind of the magnitude of the opportunity, it seems that the one area where discussion of 400 ZR would be relevant for you guys would be at Microsoft, where they've stated pretty plainly that they need to get that DCI rollout going before they can upgrade inside the data center.
And I'm not saying that's one of your design wins, but if you could add some color on that. But with a scenario like that, you know, explain a, why design wins are coming, you know, kind of maybe a little late in the game; and b, you know, kind of support the kind of small ramp and then bigger ramp in mid-year type scenario that you're discussing?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah, I mean, I think you're right, in the sense that for all of our customers, and Microsoft certainly has historically been one of if not our largest data center customer. It has been recently it has been our largest data center customer. And so, you know, anything that would affect the timing and magnitude of the rollout of Microsoft's 400G efforts, you know, would certainly be of interest to us and could be a partial explanation for some of the ramp rates that we have talked about earlier.
That's not to say, you know, certainly not all the design plans are technical qualifications that we had or even necessarily any of them with Microsoft, but we have multiple customers that are involved in that, but certainly, we're watching the situation with Microsoft, and in any of the factors that affect their rollout would likely be affecting us as well.
Tim Savageaux -- Northland Capital Markets -- Analyst
Got it. And, you know, in terms of the magnitude of that opportunity, you know, should things go reasonably well for you in 400 gig? I mean, can you imagine a scenario sometime next year where your 400 gig business is, you know, approaching the size of your current overall data center business on a quarterly basis?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
I could imagine that scenario. I think, as you pointed out, a lot of things have to go right. I would expect that 400 gig can approach, you know, say 10% of revenue at some point next year, which would put it at, you know, roughly the level of our current data center business. So, I think that that's, you know, achievable. Clearly, we're a little ways out from seeing that actually happened and having a tremendous amount of confidence in that, but I think it's certainly possible.
Tim Savageaux -- Northland Capital Markets -- Analyst
Okay, thanks very much, and congrats on the design wins.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Thank you.
Operator
This concludes our question-and-answer session. At this time, I would like to turn the conference back over to Dr. Thompson Lin, for any closing remarks.
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Okay. Thank you for joining us today. As always, thank you to all investors, customers, and employees for your continued support, and we look forward to see many of you virtually in all upcoming investment conference.
Operator
[Operator Closing Remarks]
Duration: 44 minutes
Call participants:
Lindsay Savarese -- Investor Relations
Thompson Lin -- Founder, Chairman, and Chief Executive Officer
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Simon Leopold -- Raymond James -- Analyst
Alex Henderson -- Needham -- Analyst
Sam Peterman -- Craig-Hallum -- Analyst
Dave Kang -- B. Riley -- Analyst
Tim Savageaux -- Northland Capital Markets -- Analyst
More AAOI analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics, inc (NASDAQ: AAOI) Q2 2021 Earnings Call Aug 5, 2021, 4:30 p.m. Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Simon Leopold -- Raymond James -- Analyst Alex Henderson -- Needham -- Analyst Sam Peterman -- Craig-Hallum -- Analyst Dave Kang -- B. Riley -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Looking ahead, we believe China will continue to make investment in both their 5G and fiber-to-the-home infrastructure and we expect higher revenue in the segment in the second half of this year, compared to first half.With that, I will turn the call over to Stefan to review the details of our Q2 performance and outlook for Q3.
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Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Simon Leopold -- Raymond James -- Analyst Alex Henderson -- Needham -- Analyst Sam Peterman -- Craig-Hallum -- Analyst Dave Kang -- B. Riley -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics, inc (NASDAQ: AAOI) Q2 2021 Earnings Call Aug 5, 2021, 4:30 p.m. Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman, and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer.
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Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Simon Leopold -- Raymond James -- Analyst Alex Henderson -- Needham -- Analyst Sam Peterman -- Craig-Hallum -- Analyst Dave Kang -- B. Riley -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics, inc (NASDAQ: AAOI) Q2 2021 Earnings Call Aug 5, 2021, 4:30 p.m. In the second quarter, 33% of our data center revenue was from our 40G transceiver products, and 59% was from our 100G products.Turning to our telecom segment, revenue from our telecom products of $3.3 million decreased 25.6% sequentially, primarily driven by continued slow demand in China for 5G upgrades there, and 46% from $6.2 million in Q2 of the prior year.
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Operator [Operator Closing Remarks] Duration: 44 minutes Call participants: Lindsay Savarese -- Investor Relations Thompson Lin -- Founder, Chairman, and Chief Executive Officer Stefan Murry -- Chief Financial Officer and Chief Strategy Officer Simon Leopold -- Raymond James -- Analyst Alex Henderson -- Needham -- Analyst Sam Peterman -- Craig-Hallum -- Analyst Dave Kang -- B. Riley -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics, inc (NASDAQ: AAOI) Q2 2021 Earnings Call Aug 5, 2021, 4:30 p.m. Our Q2 data center revenue came in at $22.4 million, compared with $52.5 million in the second quarter of the prior year.
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Are Institutions Heavily Invested In Applied Optoelectronics, Inc.'s (NASDAQ:AAOI) Shares?
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https://www.nasdaq.com/articles/are-institutions-heavily-invested-in-applied-optoelectronics-inc.s-nasdaq%3Aaaoi-shares-2021
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The big shareholder groups in Applied Optoelectronics, Inc. (NASDAQ:AAOI) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.
Applied Optoelectronics is a smaller company with a market capitalization of US$212m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Applied Optoelectronics.
NasdaqGM:AAOI Ownership Breakdown May 21st 2021
What Does The Institutional Ownership Tell Us About Applied Optoelectronics?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Applied Optoelectronics. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Applied Optoelectronics' historic earnings and revenue below, but keep in mind there's always more to the story.
NasdaqGM:AAOI Earnings and Revenue Growth May 21st 2021
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Applied Optoelectronics is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 15% of shares outstanding. With 5.6% and 2.5% of the shares outstanding respectively, The Vanguard Group, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders. Furthermore, CEO Chih-Hsiang Lin is the owner of 2.0% of the company's shares.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Applied Optoelectronics
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Applied Optoelectronics, Inc.. As individuals, the insiders collectively own US$8.3m worth of the US$212m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 44% ownership, the general public have some degree of sway over Applied Optoelectronics. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Applied Optoelectronics has 4 warning signs we think you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqGM:AAOI Earnings and Revenue Growth May 21st 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. The big shareholder groups in Applied Optoelectronics, Inc. (NASDAQ:AAOI) have power over the company. NasdaqGM:AAOI Ownership Breakdown May 21st 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics?
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The big shareholder groups in Applied Optoelectronics, Inc. (NASDAQ:AAOI) have power over the company. NasdaqGM:AAOI Earnings and Revenue Growth May 21st 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. NasdaqGM:AAOI Ownership Breakdown May 21st 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics?
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The big shareholder groups in Applied Optoelectronics, Inc. (NASDAQ:AAOI) have power over the company. NasdaqGM:AAOI Ownership Breakdown May 21st 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics? NasdaqGM:AAOI Earnings and Revenue Growth May 21st 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power.
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The big shareholder groups in Applied Optoelectronics, Inc. (NASDAQ:AAOI) have power over the company. NasdaqGM:AAOI Ownership Breakdown May 21st 2021 What Does The Institutional Ownership Tell Us About Applied Optoelectronics? NasdaqGM:AAOI Earnings and Revenue Growth May 21st 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power.
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2021-05-06 00:00:00 UTC
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Applied Optoelectronics Inc (AAOI) Q1 2021 Earnings Call Transcript
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https://www.nasdaq.com/articles/applied-optoelectronics-inc-aaoi-q1-2021-earnings-call-transcript-2021-05-07
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Image source: The Motley Fool.
Applied Optoelectronics Inc (NASDAQ: AAOI)
Q1 2021 Earnings Call
May 6, 2021, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Hello, and welcome to the Applied Optoelectronics Q1 2021 Earnings Call. [Operator Instructions] Please note, today's event is being recorded.
I'd now like to turn the conference over to your host today, Lindsay Savarese. Ms. Savarese, please go ahead.
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Lindsay Savarese -- Head of Investor Relations
Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics and I am pleased to welcome you to AOI's First Quarter 2021 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its first quarter 2021 financial results, and provided its outlook for the second quarter of 2021. The release is also available on the Company's website at ao-inc.com.
This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year.
Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer. Thompson will give an overview of AOI's Q1 results and Stefan will provide financial detail and the outlook for the second quarter of 2021. A question-and-answer session will follow our prepared remarks.
Before we begin, I would like to remind you to review AOI's safe harbor statement. On today's call management will make forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the Company's actual results to differ materially from those anticipated in such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as believe, anticipate, estimate, intend, predict, expects, plan, may, should, could, would, will or thinks, and by other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovation, as well as statements regarding the Company's outlook for the second quarter of 2021. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of thisearnings callto conform these statements to actual results or to changes in the Company's expectation. More information about other risks that may impact the Company's business are set forth in the Risk Factor section of the Company's reports on file with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2020.
Also, with the exception of revenue, all financials discussed today are on a non-GAAP basis, unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures, as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website.
Before moving to the financial results, I'd like to announce that AOI management will virtually participate at the Needham Technology & Media Conference on May 20, and the Cowen Annual Technology, Media & Telecom Conference on June 2. The presentations of these conferences will be webcast live and links to the webcast will be available on the Investor Relations section of the AOI website. We hope to have the opportunity to interact with many of you virtually. Additionally, I'd like to note the date of our second quarter 2021earnings callis currently scheduled for August 5, 2021.
Now, I would like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics' Founder, Chairman and CEO. Thompson?
Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman
Thank you, Lindsay, and thank you for joining our call today. We delivered revenue and gross margin in line with our expectations, and a narrower non-GAAP loss per share than we anticipated.
Total revenue for the first quarter of $49.7 million, grew 22.8%, compared to the first quarter in the prior year and was down 5.8% sequentially. As we expected, we experienced generally soft Q1 conditions in the datacenter segment. We expect datacenter business to increase in the second half of the year, as our customers begin 400G upgrades and inventory issues around 100G normalize.
Non-GAAP gross margin of 24.6% was in line with our guidance range of 23.5% to 25%, and non-GAAP net loss was narrower than our previous guidance, come in at $0.21 per share.
In out CATV segment, the overall demand environment was strong as MSOs, particularly in North America continue to upgrade their networks. Total revenue for our CATV products increased to more than 4 times its prior year level and was increased 17% sequentially, off a strong fourth quarter to $18.6 million. This is the highest quarterly revenue for this segment in almost three years.
By the pause [Phonetic] in 5G deployments from several of our China telecom customers, as we anticipated, we started to see a nice recovery in the first quarter. As a result, revenue from our telecom products of $4.5 million was up 75% year-over-year and 28% sequentially. Looking ahead, we believe China will continue to make investments in both their 5G and fiber-to-the-home infrastructure and we believe we are well positioned to sell lasers in both of these markets. We look forward to meeting again in person probably soon.
With that, I will turn the call over to Stefan to review the details of our Q1 performance and outlook for Q2. Stefan?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Thank you, Thompson. As Thompson mentioned, we delivered revenue and gross margin in line with our expectations and a narrower non-GAAP loss per share than we anticipated. The market dynamics we anticipated played out as expected. While we continue to see softness in the datacenter market, we are pleased with the nice recovery we saw in the telecom market and continued strength in the CATV market. In total, for the first quarter, we secured four new design wins among four customers. Among these four design wins, two were in our datacenter business, including one with a new customer, which is a large US-based social media-focused datacenter operator. One within our 5G business and the other design win within our FTTH segment.
Total revenue for the first quarter of $49.7 million, grew 22.8%, compared to the first quarter in the prior year. Our Q1 revenue was down 5.8% sequentially and was in line with our guidance range of $47 million to $51 million. We currently believe that the headwinds we are seeing in the datacenter market related to the inventory normalization following the shift to working from home early last year will persist through the first half of the year and then begin improving in the second half and beyond, as several of our customers begin to ramp 400G later in the year and inventory conditions in our 100G business fully normalize.
On the 400G front, we have continued to work on qualifications and delivered samples to new customers during the quarter. We have also received several new inquiries from hyperscale customers for our 400G products and we are working to deliver samples to these customers as well.
In the first quarter, 52% of our revenue was from our datacenter products, 38% was from our CATV products, with the remaining 10% from FTTH, telecom and other. Our datacenter revenue came in at $25.9 million, compared with $33.3 million in the first quarter of the prior year. In the first quarter, 25% of our datacenter revenue was from our 40G transceiver products and 68% was from our 100G products.
Turning to our CATV product segment, the overall demand environment remained strong as MSOs, particularly in North America, continue to upgrade their networks. We generated revenue of $18.6 million, up 17% sequentially and up 341% from $4.2 million in Q1 of the prior year. Our CATV performance represents a record for our first quarter, which is typically seasonally down and was just shy of our highest quarter in the Company's history. In our CATV business, we have seen some component shortages. We are working with our suppliers to improve delivery schedules for these critical components and in some cases, adding additional suppliers. We do not anticipate that these shortages will hamper our ability to continue to grow revenue, but we may continue to have a longer-than-usual backlogs for several quarters while we work to improve supply. We ended the first quarter with a strong backlog of CATV products, which we expect to continue to drive growth in this segment going forward.
As we anticipated, revenue from our telecom products of $4.5 million, increased 28% sequentially and 75% from $2.6 million in Q1 of the prior year. Looking ahead, we believe China will continue to make investments in both their 5G and FTTH infrastructure and we believe we are well positioned to sell lasers into both of these markets. Also, notable during the quarter, we received our first 5G design win from a customer outside of China. We are excited to see that the success we have had with our China-based 5G customers is beginning to spread to other regions as 5G itself begins to ramp in other areas outside of China.
For the first quarter, our top 10 customers represented 90.5% of revenue, compared to 84.8% in Q1 of the prior year. This increase in revenue among the top 10 customers is largely related to the strong results in CATV, as several customers in this segment contributed significantly to the increased revenue this quarter. We had four 10% or greater customers in the first quarter, two of which were in the datacenter market and two of which were in our CATV market. These customers contributed 19%, 16%, 16% and 14% of total revenue, respectively.
In Q1, we generated non-GAAP gross margin of 24.6%, which was in line with our guidance range of 23.5% to 25% and compared to 19.5% in Q1 of the prior year.
Total non-GAAP operating expenses in the first quarter were $20.6 million, or 41.4% of revenue, compared with $19.4 million, or 48% of revenue in Q1 of the prior year.
As we mentioned on the Q4 call, we experienced additional costs during the first quarter due to the historic storm that hit Texas in February, which totaled $0.5 million.
Non-GAAP operating loss in the first quarter was $8.4 million, compared to an operating loss of $11.5 million in Q1 the prior year.
GAAP net loss for Q1 was $15.6 million, or a loss of $0.59 per basic share, compared with a GAAP net loss of $16.8 million, or a loss of $0.83 per basic share in Q1 of 2020.
On a non-GAAP basis, net loss for Q1 was $5.5 million, or a loss of $0.21 per basic share, which was narrower than our guidance range of a loss of $5.9 million to $7.3 million, or a loss in the range of $0.23 to $0.28 per basic share and compares to a net loss of $8.8 million, or a loss of $0.44 per basic share in Q1 of the prior year. The basic shares outstanding used for computing the net loss in Q1 were 26.4 million.
Now, turning to the balance sheet. We ended the first quarter with $49.3 million in total cash, cash equivalents, short-term investments, and restricted cash. This compares with $50.1 million at the end of the fourth quarter and reflects $15.2 million in cash used for operations. As of March 31, we had $106.3 million in inventory, compared to $110.4 million at the end of Q4. Inventory decreased due to utilization of inventory as orders, especially for telecom and CATV products, increased. This inventory reduction is consistent with our long-term plan as we focus on rationalizing inventory levels.
We made a total of $2.7 million in capital investments in the quarter, including $2.3 million in production equipment and machinery and $0.3 million on construction and building improvements. The construction on our new China facility is largely complete with all heavy construction done. In total, we currently expect 2021 capex to be approximately $16 million. Although as we have noted in prior years, there can be significant variability in this estimate as the year progresses.
I would also like to provide a quick update on the at-the-market offering that we announced in February of 2020. To date, we have completed this program raising the total of $55 million in gross proceeds, including $14.7 million raised in Q1. As we disclosed in February, we have initiated a new at-the-market offering. To date, we have raised $0.6 million under this new program. We intend to use these proceeds to continue to make investments in the business, including new equipment and machinery for production and research and development use.
Moving now to our Q2 outlook. We expect Q2 revenue to be between $51 million and $56 million and non-GAAP gross margin to be in the range of 25.5% to 27.5%. Non-GAAP net loss is expected to be in the range of $3.8 million to $5.6 million and non-GAAP loss per basic share between $0.14 and $0.21 using weighted average basic share count of approximately 27.2 million shares.
With that, I will turn it back over to the operator for the Q&A session. Operator?
Questions and Answers:
Operator
Thank you. [Operator Instructions] And the first question comes with -- from David Kang with B. Riley.
Danny Cheng -- B. Riley -- Analyst
Hey, guys. Thanks for taking my question. This is Danny on for Dave. I was wondering if you guys could talk about the competitive landscape in 400G that you guys are saying.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I mean, it's pretty consistent with what we've said in prior calls. Overall, I don't think there's any significant change from the landscape at 100G the competitors that we saw there tend to be -- continuing to be what we expect to be the strongest competitors at 400 gig as well.
Danny Cheng -- B. Riley -- Analyst
Got it. And, I guess, on the chip shortage situation, I was wondering you guys said that you don't expect it to negatively impact revenues. But, I guess, we're wondering how long you guys kind of expect that to persist?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Well, it's a little hard to say precisely. I think it's fair to say that we expect it to persist at least a couple more quarters. And you're correct that we aren't expecting it to result in reduced revenues. We expect to continue to be able to grow revenue. But we're just sort of capped in the rate at which we can grow based on component availability. It probably over the next couple of quarters. Beyond that it becomes really hard to say, our suppliers are telling us that they're adding production capacity and ramping up. And if all those plans come to fruition as we expect, then I think we're probably looking at maybe two quarters. If it lasts a little longer than that, it may stretch beyond that.
We're also up against, I guess, you could say a good problem to have, I mean, the cable TV business is growing very nicely for us. We're seeing good demand picture really through the end of this year and into next year. And so, it's harder for our suppliers to catch up because they're getting hit by higher than -- higher demand than we've seen certainly in the last several years. So, it's a combination of sharply increased demand with somewhat reduced supply due to COVID considerations, and the two of those things together is what's causing that shortage.
Danny Cheng -- B. Riley -- Analyst
Got it. And you said into next year, so does that imply throughout 2022, you'll also see this momentum from CATV?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Right now, we're pretty much booked up in CATV through the end of the year. And there's no indication that that's going to slow down next year. Obviously, being a few quarters out, that's still a little bit murky. But I think the MSOs are really at the beginning of their upgrade process, and some of them have yet to even start the upgrade process in earnest. So, I think it's reasonable to expect that that process will take several years to complete. And so, yeah, I believe that we'll see pretty strong CATV performance into 2022. Not just this year.
Danny Cheng -- B. Riley -- Analyst
Great. Thank you for the color.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
You're welcome.
Operator
Thank you. And the next question comes on Tom Diffely with D.A. Davidson.
Thomas Diffely -- D.A. Davidson -- Analyst
Yeah. Good afternoon. I wanted to get a little more color on just the datacenter recovery in the second half. I know a quarter ago you thought maybe it'd be in the second quarter. But just what are the puts and takes and what kind of gives you the confidence level?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I mean, I don't think anything's really wholesale changed in our outlook. I think the inventory -- the over inventory situation, particularly with one of our large hyperscale customers is just taking a little bit longer to resolve itself than we earlier thought. We expect it to recover at some point in Q2, but it's probably a little later than we earlier anticipated. And so, for the total Q2 revenue generation from -- at least from that customer, it's a little bit less than what we earlier expected. It's not a big change in what we had earlier expected.
I think what we talked about on the last call remains true today, which is that the really good growth that we expect to see is going to come from the 400 gig cycle as that starts to take hold with several of our customers. And on that front, as I mentioned in our prepared remarks, we're seeing increased interest. We had several new customers come and approach us during the quarter, looking for samples, looking to begin qualification efforts. The qualification efforts that were already ongoing in 400 gig, continue to go well, and the discussions with the customers continue to indicate to us that we can expect a successful conclusion from those efforts. And so, we're excited about 400 gig ramping in the second half of the year. The inventory situation that we talked about with -- again, with one of our large customers, that should also resolve itself late in the second quarter for a second half ramp. And then, as I mentioned, cable TV, telecom, even fiber-to-the-home in China seem to be looking very good in the second half as well.
Thomas Diffely -- D.A. Davidson -- Analyst
Okay. Great. Then maybe if you're willing, a little more color on the chip shortage. Are there particular types of chips or how would you characterize where the shortages is most acute, custom, off-the-shelf, whatever details you might be able to provide?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. It's all off-the-shelf stuff that we're seeing shortages on. And it's -- there's no easy way to characterize it. I would say, in general, what we're seeing shortages on or not necessarily brand new cutting edge chips. In some cases, it's actually kind of older technology that I think we're just seeing unprecedented -- maybe not unprecedented, but certainly higher demand than we've seen in the last several years. And I think it got -- some of our suppliers were caught maybe a little bit by surprise by that. And at the same time, fab capacity and other things are very, very tight as we've seen in the automotive industry and across other calls that we've listened in on just this last earnings cycle.
And it really kind of runs the gamut across multiple different chipsets and things across the industry. But I think one common trend is that, there's just a very, very tight fab capacity. So, whereas in prior times, a supplier of one of these components might have been able to drop a wafer production run into a schedule that already existed because there were some gaps in there or some slack time. Now that slack is just non-existent. And so, it's taking longer for them to get new wafer starts going, and therefore, longer to ramp up that production than it had been in years past.
Thomas Diffely -- D.A. Davidson -- Analyst
Okay. That color is very helpful. I appreciate it. And thanks for your time today.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
My pleasure.
Operator
Thank you. [Operator Instructions] And the next question comes from Sam Peterman with Craig-Hallum Capital.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
Hi, guys. This is Sam on for Richard. I just want to ask a little bit more on the datacenter. It sounds like your largest -- or I guess, first I want to ask if your largest datacenter customer in past quarters was a 19% customer this quarter, if that's fair to think about? And then, if that's the case, on a dollar basis, that's the lowest sales you've had there in about two years, it looks like? And curious how you would see that -- see sales from that customer trending over the course of the year as datacenter recovers.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. So that customer was not the 19% customer. And as we've talked about, one of our customers has an over inventory situation. We've talked about that in the last couple of calls. And I reiterated it in our prepared remarks and, again, on one of the earlier question, so I won't waste everybody's time going over that once again. But we do anticipate that that will be resolved here in the second quarter and portend the second half ramp.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
Okay. Thanks for that. And then on telecom, I'm curious with 5G starting to rollout more in the second half, what kind of upside you could see for that business in the second half? And could you talk about how we expect that to ramp between the second half of 2021 and then in 2022, whether there's kind of step up at some point or if it's kind of a linear ramp from your perspective? Any color there would be helpful.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Well, I think -- 2021, I think we expect a stronger second half than first half. Certainly, we've already started to see some incremental improvement. But we're not back to the levels where we were, let's say, middle part of last year. And so, I think there's some room to grow there. We're very excited about the progress that we've made in 5G. And also, as I mentioned in our prepared remarks, the FTTH business in China also seems to be picking up. But more exciting, perhaps than that within China is the fact that we have our first design win with a 5G customer outside of China. And I know that's been a question that's come up a lot over the last several quarters on these calls is, well, OK, you guys seem to be doing well in China, but what about the rest of the world? And I think that provides some tangible evidence that we're able to be successful with customers outside of the China market as well. And that's also very exciting.
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
Sure. Thanks for that. That's it for me.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
My pleasure.
Operator
Thank you. And the next question comes from Tim Savageaux with Northland Capital Markets.
Tim Savageaux -- Northland Capital Markets -- Analyst
Hi. Good afternoon. A couple of questions. As you look at your Q2 guide and you're guiding a kind of mid- to high-single digits sequentially, given the datacenter commentary, it sounds like you expect cable TV to be the primary driver of that sequential growth, maybe a little telecom as well, or as you look across your segments, how do you see that progressing?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Yeah. I think that the cable TV again, I think we can see some revenue growth in there. Telecom, again, it remains to be seen how much that's going to grow in the next quarter, but certainly the trends are good so far. And the datacenter, it really depends pretty sensitively on how fast -- and particularly the customer that we've seen this inventory issue with, how fast they can resolve that inventory. We believe it'll be at some point in this quarter. But whether it happens in mid-quarter or late in the quarter will kind of set the trajectory in terms of how much revenue we can actually book in this quarter. And so, that's kind of the wild card in the forecasting picture.
Tim Savageaux -- Northland Capital Markets -- Analyst
Got it. And just to follow-up on design wins. I think you said two datacenter or one fiber-to-the-home and one 5G, correct me if I'm wrong there.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
That's correct.
Tim Savageaux -- Northland Capital Markets -- Analyst
But in the datacenter, is the customer you called out there, is that a new customer for Applied Opto, or perhaps a former customer?
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
No, it is. It's a brand new customer that we haven't sold to before. It's a California-based, social media-focused datacenter operator.
Tim Savageaux -- Northland Capital Markets -- Analyst
Great. Thanks for the breadcrumbs.
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
My pleasure.
Operator
Thank you. And this concludes our question-and-answer session. I would like to turn the conference back over to Thompson Lin for any closing comments.
Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman
Okay. And thank you for joining us today. As always, thank you for our investors, customers, and employees for your continued support. And we look forward to virtually see many of you at our upcoming investment conference.
Operator
[Operator Closing Remarks]
Duration: 29 minutes
Call participants:
Lindsay Savarese -- Head of Investor Relations
Thompson Lin -- Founder, President, Chief Executive Officer, and Chairman
Stefan Murry -- Chief Financial Officer and Chief Strategy Officer
Danny Cheng -- B. Riley -- Analyst
Thomas Diffely -- D.A. Davidson -- Analyst
Sam Peterman -- Craig-Hallum Capital Group -- Analyst
Tim Savageaux -- Northland Capital Markets -- Analyst
More AAOI analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Applied Optoelectronics Inc (NASDAQ: AAOI) Q1 2021 Earnings Call May 6, 2021, 4:30 p.m. Davidson -- Analyst Sam Peterman -- Craig-Hallum Capital Group -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. In some cases, you can identify forward-looking statements by terminology such as believe, anticipate, estimate, intend, predict, expects, plan, may, should, could, would, will or thinks, and by other similar expressions that convey uncertainty of future events or outcomes.
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Davidson -- Analyst Sam Peterman -- Craig-Hallum Capital Group -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Applied Optoelectronics Inc (NASDAQ: AAOI) Q1 2021 Earnings Call May 6, 2021, 4:30 p.m. Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer.
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Applied Optoelectronics Inc (NASDAQ: AAOI) Q1 2021 Earnings Call May 6, 2021, 4:30 p.m. Davidson -- Analyst Sam Peterman -- Craig-Hallum Capital Group -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Total non-GAAP operating expenses in the first quarter were $20.6 million, or 41.4% of revenue, compared with $19.4 million, or 48% of revenue in Q1 of the prior year.
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Applied Optoelectronics Inc (NASDAQ: AAOI) Q1 2021 Earnings Call May 6, 2021, 4:30 p.m. Davidson -- Analyst Sam Peterman -- Craig-Hallum Capital Group -- Analyst Tim Savageaux -- Northland Capital Markets -- Analyst More AAOI analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We expect to continue to be able to grow revenue.
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078529b4-810f-482a-a9dc-d35ba2853590
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9599.0
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2021-04-06 00:00:00 UTC
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Applied Optoelectronics (NASDAQ:AAOI) Share Prices Have Dropped 64% In The Last Three Years
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AAOI
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https://www.nasdaq.com/articles/applied-optoelectronics-nasdaq%3Aaaoi-share-prices-have-dropped-64-in-the-last-three-years
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nan
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If you love investing in stocks you're bound to buy some losers. But the last three years have been particularly tough on longer term Applied Optoelectronics, Inc. (NASDAQ:AAOI) shareholders. Regrettably, they have had to cope with a 64% drop in the share price over that period. On the other hand the share price has bounced 8.5% over the last week.
Applied Optoelectronics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last three years, Applied Optoelectronics' revenue dropped 22% per year. That means its revenue trend is very weak compared to other loss making companies. Arguably, the market has responded appropriately to this business performance by sending the share price down 18% (annualized) in the same time period. When revenue is dropping, and losses are still costing, and the share price sinking fast, it's fair to ask if something is remiss. It could be a while before the company repays long suffering shareholders with share price gains.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
NasdaqGM:AAOI Earnings and Revenue Growth April 6th 2021
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for Applied Optoelectronics in this interactive graph of future profit estimates.
A Different Perspective
Applied Optoelectronics provided a TSR of 9.7% over the last twelve months. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 8% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Applied Optoelectronics better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Applied Optoelectronics (at least 1 which is significant) , and understanding them should be part of your investment process.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqGM:AAOI Earnings and Revenue Growth April 6th 2021 We like that insiders have been buying shares in the last twelve months. But the last three years have been particularly tough on longer term Applied Optoelectronics, Inc. (NASDAQ:AAOI) shareholders. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
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But the last three years have been particularly tough on longer term Applied Optoelectronics, Inc. (NASDAQ:AAOI) shareholders. NasdaqGM:AAOI Earnings and Revenue Growth April 6th 2021 We like that insiders have been buying shares in the last twelve months. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip.
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NasdaqGM:AAOI Earnings and Revenue Growth April 6th 2021 We like that insiders have been buying shares in the last twelve months. But the last three years have been particularly tough on longer term Applied Optoelectronics, Inc. (NASDAQ:AAOI) shareholders. Applied Optoelectronics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS).
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But the last three years have been particularly tough on longer term Applied Optoelectronics, Inc. (NASDAQ:AAOI) shareholders. NasdaqGM:AAOI Earnings and Revenue Growth April 6th 2021 We like that insiders have been buying shares in the last twelve months. If you love investing in stocks you're bound to buy some losers.
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05a2d8c7-1eb3-4355-b235-dd996eaae678
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