Applied Optoelectronics (AAOI) surged 34.79% in pre-market trading, continuing its recent momentum after a significant gain in the previous session.
The fiber-optic component maker reported better-than-expected fourth-quarter results, with an adjusted loss of just 1-cent per share compared to Wall Street's projected loss of 11 cents. Revenue rose approximately 34% year-over-year to $134.3 million, edging past consensus estimates and marking a record quarter for the company.
Management's first-quarter 2026 guidance of $150 million to $165 million in revenue exceeded analyst expectations around $145 million, with the company forecasting a non-GAAP net loss of no more than 9 cents per share and potential to break even. Following the report, Needham reiterated its Buy rating and raised its price target to $80 from $43, while B. Riley Securities upgraded the stock to Neutral from Sell and increased its target to $54 from $15.