Movement Alert|Applied Optoelectronics Rises 10.02% in Pre-Market Trading, Market Reprices Strong Q2 Beat and Robust Demand Outlook

Market Focus08-07

On August 7, Applied Optoelectronics rose 10.02% in pre-market trading, trading at $138.146/share, with turnover of $14.826 million. The rebound follows an initial after-hours decline of over 6% triggered by profit-taking and Q3 guidance slightly below consensus.

The company reported Q2 revenue of $191.9 million, up 86% year-over-year, beating the consensus estimate of $190.48 million. Adjusted EPS came in at $0.06, significantly exceeding the $0.02 analyst estimate. Data center revenue surpassed $100 million for the first time, with 800G product revenue doubling sequentially. Management noted customer orders exceed supply capacity by 20% to 40% and expects demand to outpace production through mid-2027. The 1.6T product is nearing customer certification and initial shipments.

For Q3, the company guided revenue of $255 million to $290 million and adjusted EPS of $0.11 to $0.26, with midpoints slightly below the Street consensus of $278.3 million and $0.28 respectively. The pre-market reversal suggests the market is looking past near-term guidance softness and repricing the stock on strong execution and structural demand tailwinds. Sector peer Lumentum rose 3.57%, reflecting broader optical communications sentiment recovery.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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