Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Here's Why Applied Optoelectronics (AAOI) Stock Soared Today

Shares of Applied Optoelectronics AAOI soared more than 8% on Friday after the fiber-optics company pre-announced a quarterly earnings beat and revenue beat.

AAOI management said that the company now expects non-GAAP profit in the range of $1.31 to $1.36 per share, with quarterly revenues coming in at about $117 million. This updated guidance is well above our current consensus estimates of $1.07 per share and 109.7 million, respectively.

Piper Jaffray analyst Troy Jensen, who currently rates AAOI as “overweight,” hiked his price target for the stock to $90 from $85.

“AAOI pre-released another impressive quarter with revenue upside and record margin levels that have never been seen before in the optical component industry (45% gross, roughly 30% operating),” said Jensen in a note.

The analyst’s new price target represents more than a 15% premium from Thursday’s close.

Applied Optoelectronics, which is currently a Zacks Rank #1 (Strong Buy), is benefitting from a new batch of customers looking to upgrade their datacenters. Companies like Facebook FB and Amazon AMZN are continuing to shift towards hyper-fast communications for the cloud, and fiber-optics equipment makes like AAOI are right there to satisfy them.

Shares of AAOI have gained a staggering 575% over the past year. The stock is up about 210% year-to-date.

Want more stock market analysis from this author? Make sure to follow @

on Twitter!

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>


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
 
Facebook, Inc. (FB): Free Stock Analysis Report
 
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research