Shares of Applied Optoelectronics (NASDAQ: AAOI) surged by an impressive 17.32% on November 8th, driven by the company's better-than-expected revenue performance and promising growth outlook. Despite reporting a larger-than-anticipated loss per share for the third quarter of 2024, AAOI's revenue beat and year-over-year growth provided a positive signal to investors, fueling optimism about the company's ability to drive further momentum in its top line.
For the quarter ended September 2024, AAOI reported an adjusted loss per share of $0.21, missing analysts' expectations of a $0.17 loss. However, the company's revenue of $65.15 million exceeded the consensus estimate of $62.60 million, representing a 4.16% year-over-year increase. This revenue growth, combined with AAOI's promising revenue outlook for the fourth quarter, appeared to be the primary catalyst behind the stock's significant surge.
Investors seemed to prioritize the company's revenue trajectory over short-term profitability concerns, as AAOI provided a bullish revenue guidance for the fourth quarter, expecting revenue in the range of $94 million to $104 million. This positive outlook further bolstered investor confidence in the company's ability to drive further revenue growth, despite the challenging macroeconomic environment.
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