Fiber-optic name Applied Optoelectronics (AAOI 78.04, +5.40) trades 7.4% higher to all-time highs this morning in light of the company’s upside preliminary guidance for Q2 ended June 30.
Specifically, AAOI now sees revenue of about $117.3 million, above the prior outlook of $106.0-112.0 million. Non-GAAP fully diluted earnings per share are expected in the range of $1.31-1.36, above the prior non-GAAP outlook of $1.09-1.19 per share. GAAP and non-GAAP gross margin in the range of 45.0-45.4%, above the prior non-GAAP outlook of 41.0-42.5%.
Management gave commentary that, “we expect to deliver another record quarter with our top and bottom-line results expected to exceed our guidance.” Further, “our results were driven by improvement in our manufacturing costs, capacity expansion and solid execution by our production team. We are pleased with our performance and look forward to sharing the additional details of our second quarter results on our conference call in August.”
This guidance raise marks the fourth such update in a row on a quarterly basis. The last such guidance revision came on April 12, when AAOI announced expectations for Q1 results ahead of original guidance.
The full Q2 results are slated for an afternoon release on August 3, 2017. The company will also give an outlook for Q3 at that time.
Fiber peers LITE +6.12%, COHR +4.03%, OCLR +3.44%, FNSR +2.96%, INFN +2.34%, VIAV +1.56%, FN +1.53%, IIVI +1.09%, NPTN +0.72% trade higher in sympathy.