Applied Optoelectronics surges to highest in more than eight years after earnings

Applied Optoelectronics AAOI.O last up 44.5% to $77.50 after shooting up 48.1% to $79.50, its highest level since August 2017; the 44.5% climb would represent biggest daily gain since November 8, 2024

The provider of fiber-optic networking products reported a Q4 adj. loss of 1 cent per share on revenue of $134.27 mln, topping analyst estimates for an EPS loss of 11 cents and revenue of $132.94 mln, per LSEG data

AAOI also forecast Q1 adj EPS between a loss of 9 cents to breakeven on revenue between $150 mln to $165 mln; current estimate is for a loss of 5 cents per share and revenue of $154.8 mln

Several analysts raised price target on the stock after results, while B. Riley upgraded to "neutral" from "sell" rating

Of the seven analysts that cover AAOI, the breakdown of recommendations is 4 "strong buy" or "buy," and 3 "hold" ratings

Median price target of $55 is up from $42 a month ago and $35 on Nov 27

AAOI has short interest of 15.56% of its outstanding shares as of February 27, a 52-week low, but holds a StarMine short squeeze score of 99, indicating only 1% of stocks have a higher likelihood of a significant relative price rise in the next 30 days