Applied Optoelectronics Inc (NASDAQ: AAOI) has reported E.P.S. of $-0.57 for its second fiscal quarter (ending June 30) versus $0.41 for the same period a year ago — a decline of -239%. Relative to the consensus estimate of $-0.37, this was a shortfall of $-0.20. E.P.S. were $-1.72 for the latest four quarters through June 30 versus $1.81 for the same period a year ago — a decline of -195%.
Recent Price Action
On 8/7/19, Applied Optoelectronics Inc (NASDAQ: AAOI) stock rose modestly by 0.9%, closing at $10.21. Moreover, exceptionally high trading volume at 254% of normal accompanied the advance. Relative to the market the stock has been extremely weak over the last nine months but has risen 7.7% during the last week.
Current PriceTarget Research Rating
AAOI’s future returns on capital are forecasted to be below the cost of capital. Accordingly, the company is expected to be a major Value Eraser.
AAOI has a current Value Trend Rating of D (Negative). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. AAOI has a good Appreciation Score of 74 but a very low Power Rating of 6, with the Negative Value Trend Rating the result.
In light of this discouraging new earnings information we are reviewing our current Overall Rating of D. This review will be completed in the next several days.