Market Overview

Preview: Applied Optoelectronics's Earnings

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Applied Optoelectronics (NASDAQ: AAOI) releases its next round of earnings this Thursday, November 05. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Applied Optoelectronics have modeled for quarterly EPS loss of $0.08 on revenue of $79.00 million. In the same quarter last year, Applied Optoelectronics reported EPS of $0.15 on revenue of $46.08 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, earnings would be up 46.67%. Sales would be have grown 71.43% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.25 -0.38 -0.23 -0.24
EPS Actual -0.24 -0.44 -0.18 -0.15
Revenue Estimate 57.05 M 44.83 M 47.81 M 47.75 M
Revenue Actual 65.22 M 40.47 M 48.66 M 46.08 M

Stock Performance

Shares of Applied Optoelectronics were trading at $9.14 as of November 03. Over the last 52-week period, shares are down 16.93%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Applied Optoelectronics is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings