Overview

* Applied Optoelectronics ( AAOI ) Q2 revenue rises but misses analyst expectations, per LSEG data

* Adjusted net income for Q2 missed estimates, reflecting higher operating expenses

* Company sees strong demand in datacenter and CATV businesses, boosting future prospects

Outlook

* Applied Optoelectronics ( AAOI ) expects Q3 revenue between $115 mln and $127 mln

* Company anticipates Q3 non-GAAP gross margin of 29.5% to 31.0%

* Applied Optoelectronics ( AAOI ) projects Q3 non-GAAP net loss of $5.9 mln to $2.0 mln, or $0.10 to $0.03 per share

* Company aims for 800G transceiver production capacity of 100,000 units per month by year-end

Result Drivers

* R&D INVESTMENTS - Elevated operating expenses due to strategic investments in R&D and SG&A, including efforts for 800G and 1.6Tb transceivers, per CEO Dr. Thompson Lin

* DATACENTER GROWTH - Steady growth in datacenter business contributed to revenue increase

* CATV DEMAND - Strong demand in CATV business supported revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $103 mln $105.80

Revenue mln (6

Analysts

)

Q2 Miss -$8.80 -$4.06

Adjusted mln mln (5

Net Analysts

Income )

Q2 Net -$9.10

Income mln

Q2 Gross 30.3%

Margin

Q2 30.4%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Applied Optoelectronics Inc ( AAOI ) is $31.00, about 25.1% above its August 6 closing price of $23.23

* The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)