Applied Optoelectronics Q2 Revenue Beats, Non-GAAP Profit Returns; Guides Q3 Above Views
AAOI has more than doubled off its 52-week low of $18.5.
Summary
Applied Optoelectronics delivered a slight Q2 revenue beat at $191.9M vs. $190.5M consensus, while non-GAAP net income swung to a $5.5M profit, well above the $1.7M estimate. The quarter was driven by 800G product volumes more than doubling sequentially and strong adoption of 1.8 GHz CATV products. Management guided Q3 revenue to $255M-$290M, above the pre-release consensus, with non-GAAP gross margin of 29%-30.5%. Demand for 800G and 1.6T transceivers is expected to outstrip production capacity through mid-2027, signaling sustained growth. This follows the recent news of a potential FCC ban on Chinese-made optical transceivers, which could benefit domestic suppliers like AAOI. The results and guidance reinforce the company's momentum in high-speed optics for data centers.
At the time of this announcement, AAOI was trading at $117.87 on NASDAQ in the Technology sector, with a market capitalization of approximately $10B. The 52-week trading range was $18.50 to $233.67. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.