NASDAQ$AAOI

Applied Optoelectronics Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported good growth in each of the three major business segments and exceeded gross margin expectations.

Applied Optoelectronics reported third quarter 2020 results with good growth in its three major business segments and exceeded gross margin expectations. They secured a second qualification for a 400G product with a major datacenter operator.

  • Recorded good growth in each of the three major business segments.
  • Exceeded gross margin expectations.
  • Secured second qualification for a 400G product with a major datacenter operator.
  • Customer interest continues to increase for the 400G product.

Headline financials

Total Revenue

$76.6M

Previous: $46.1M+66.2%
EPS (adj)

-$0.06

Previous: -$0.15+60.0%
Capital Expenditures

-$12.1M

Previous: -$26M+53.3%
Free Cash Flow

-$21.7M

Previous: -$34.8M+37.4%
Net Income

-$9.62M

Previous: -$8.78M-9.5%
Operating Income

-$6.78M

Previous: -$11M+38.4%
Gross Profit

$19.2M

Previous: $12M+60.2%
Cash & Equivalents

$46.8M

Previous: $70M-33.2%
Total Assets

$498M

Previous: $484M+2.9%
Stock-Based Comp

$3.26M

Previous: $2.98M+9.6%

Revenue & EPS history

Applied Optoelectronics · Revenue · Quarterly

$76.6M

Q3 2020+66.2%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Applied Optoelectronics · $24.5M total across 1 segment · Q1 2021

  • CATV
    $24.5M

Forward guidance

The company expects headwinds in the fourth quarter as hyperscale data center customers adjust their inventory levels downward, and they see effects of what they believe to be a temporary pause in 5G deployments in China. However, they believe their customer relationships and market share position remains strong, while the continued demand for higher bandwidth will drive long-term growth.

Headwinds

  • Expect headwinds in the fourth quarter as hyperscale data center customers adjust their inventory levels downward.
  • See effects of what they believe to be a temporary pause in 5G deployments in China.
  • Impact of the COVID-19 pandemic on business and financial results
  • Reduction in the size or quantity of customer orders
  • Potential pricing pressure

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.0%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+9.6%

Avg return

30 days after

43%

24 / 56 earnings

Positive

+71.3%

Q3 2024

Best reaction

-30.9%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-11.8%+5.3%-0.9%
Q4 2025+56.9%+85.7%+82.9%
Q3 2025-1.9%-17.7%-8.6%
Q1 2025-0.5%+29.5%+14.0%
Q4 2024-4.6%-28.0%-35.0%
Q3 2024+71.3%+76.1%+139.9%
Q2 2024-1.4%+11.0%+75.6%
Q1 2024-5.6%+3.0%-2.6%
Q4 2023-26.3%-19.6%-23.5%
Q3 2023-4.9%+24.7%+100.6%
Q2 2023+49.0%+65.0%+88.6%
Q1 2023-7.0%+0.6%+26.8%
Q4 2022-7.4%-0.4%-14.5%
Q3 2022-19.7%-17.0%-10.4%
Q2 2022-3.1%-4.2%+18.2%
Q1 2022-11.2%-20.0%-21.1%
Q4 2021-10.2%-5.7%-14.8%
Q3 2021-30.0%-31.3%-35.5%
Q2 2021-7.3%-7.7%+0.1%
Q1 2021+7.5%+4.3%+19.7%
Q4 2020-19.7%-25.7%-28.6%
Q3 2020-15.2%-18.4%-6.8%
Q2 2020-1.9%-15.8%-34.7%
Q1 2020-5.5%-13.9%-7.4%
Q4 2019-12.3%-7.7%-26.5%
Q3 2019-5.6%+7.2%-8.5%
Q2 2019+7.7%-3.7%+1.8%
Q1 2019-9.5%-15.9%-21.4%
Q4 2018+5.5%+13.1%-13.0%
Q3 2018+6.9%-3.3%-5.7%
Q2 2018+5.0%+9.0%-17.3%
Q1 2018-4.1%-5.5%+33.7%
Q4 2017-17.5%-16.0%-23.9%
Q3 2017+15.4%+19.8%+2.8%
Q2 2017-30.9%-23.9%-36.9%
Q1 2017+20.4%+33.7%+60.7%
Q4 2016+23.9%+23.7%+48.2%
Q3 2016+7.7%+13.2%+15.8%
Q2 2016+20.5%+13.9%+42.7%
Q1 2016-19.6%
Q4 2015+2.7%
Q3 2015-3.7%
Q2 2015+11.9%
Q1 2015+10.9%
Q4 2014+14.2%
Q3 2014-25.4%
Q2 2014-1.3%
Q1 2013-1.8%
Q1 2014-12.1%
Q2 2013+0.6%
Q1 2012+0.6%
Q4 2013+0.6%
Q2 2012+0.6%
Q3 2013+0.3%
Q3 2012+0.3%
Q4 2012+0.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro