Applied Optoelectronics Q3 EPS Outlook Narrowed, Revenue Guidance Lowered

Applied Optoelectronics has reported Q3 EPS of (10c)-(3c), below consensus of (1c). The company expects Q3 revenue to be between $115M-$127M, below consensus of $118.64M.

Applied Optoelectronics (AAOI) has reported its Q3 earnings, with the company posting an EPS of (10c)-(3c), which is below the consensus estimate of (1c). The company's revenue for the quarter is expected to be between $115M and $127M, also falling short of the consensus estimate of $118.64M [1].

The company's Q3 loss of (10c)-(3c) per share represents a significant miss compared to the Zacks Consensus Estimate of (1c) per share. This quarterly report marks an earnings surprise of -100.00%, which is a notable deviation from the expected loss of $0.08 per share [1].

Revenue for the quarter ended June 2025 was $102.95 million, which missed the Zacks Consensus Estimate by 1.83%. This compares to year-ago revenues of $43.27 million, showing a substantial increase in revenue over the past year [1].

The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call. Applied Optoelectronics has underperformed the market so far this year, with its shares losing about 37% since the beginning of the year, compared to the S&P 500's gain of 7.9% [1].

The outlook for the company's future earnings and the industry's performance will be critical for investors. The Electronics - Semiconductors industry, which includes Applied Optoelectronics, ranks in the bottom 31% of the 250 plus Zacks industries [1].

Investors should keep an eye on earnings estimate revisions for the coming quarters and the current fiscal year. The current consensus EPS estimate is -$0.03 on $118.77 million in revenues for the coming quarter and -$0.05 on $472.84 million in revenues for the current fiscal year [1].

Broadcom Inc. (AVGO), another major player in the industry, is expected to report its Q3 earnings on September 4. Broadcom is expected to post quarterly earnings of $1.66 per share, representing a year-over-year change of +33.9% [1].

In conclusion, while Applied Optoelectronics has missed revenue and earnings estimates, the company's future performance will depend on its ability to meet or exceed market expectations. Investors should closely monitor the company's earnings calls and the broader industry trends for further insights.

References:
[1] https://www.nasdaq.com/articles/applied-optoelectronics-aaoi-reports-q2-loss-misses-revenue-estimates