Stock in Focus: Applied Optoelectronics, Inc. (AAOI)

Company Profile:

Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, cable television and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was founded in 1997 and is headquartered in Sugar Land, Texas.

Recent News:

The company will release financial results for its first quarter ended March 31, 2019 on Wednesday, May 8, 2019. It will host a conference call and webcast for analysts and investors to discuss its first quarter 2019 financial results and outlook for its second quarter 2019 at 4:30 p.m. Eastern time / 3:30 p.m. Central time.

For the fourth quarter of 2018, the company reported that GAAP revenue was $58.0 million, compared with $79.9 million in the fourth quarter 2017 and $56.4 million in the third quarter of 2018. Non-GAAP revenue was $58.9 million.

On Feb. 28, 2019, it has priced its previously announced offering of $70,000,000 aggregate principal amount of 5.00% Convertible Senior Notes due 2024 in an offering exempt from the registration requirements of the Securities Act of 1933, as amended. It also granted the initial purchasers of the Notes an option to purchase up to an additional $10,500,000 aggregate principal amount of the Notes.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

AAOI’s strengths can be seen in its strong growth and strong profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 50.55 with positive bias. We rate Applied Optoelectronics, Inc. (AAOI) a STRONG BUY.