Here's Why Applied Optoelectronics Inc. Shares Soared Today
Shares of Applied Optoelectronics (NASDAQ: AAOI) are on fire in Wednesday's trading session, rising 17.7% as of 2:45 p.m. EST. Tuesday night's third-quarter report beat Wall Street's estimates across the board, making it easy to embrace the stock on Wednesday.
The maker of optical products, from low-level components to turnkey networking systems, saw top-line revenues rise 27% year over year, landing at $88.9 million. The growth spurt was driven by strong orders from data center and cable TV customers.
On the bottom line, adjusted earnings surged 184% higher, stopping at $1.08 per diluted share. The revenue gains were amplified by the mathematical fact that the year-ago period was a low point in AOI's recent history where fixed costs nearly zeroed out the bottom line entirely.
Source: Fool.com