With the business potentially at an important milestone, we thought we'd take a closer look at Applied Optoelectronics, Inc.'s (NASDAQ:AAOI) future prospects. Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States and China. The US$465m market-cap company announced a latest loss of US$56m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Applied Optoelectronics' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Applied Optoelectronics is bordering on breakeven, according to the 4 American Communications analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$36m in 2025. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 134% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
NasdaqGM:AAOI Earnings Per Share Growth April 11th 2024
Underlying developments driving Applied Optoelectronics' growth isn't the focus of this broad overview, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there's one issue worth mentioning. Applied Optoelectronics currently has a relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Applied Optoelectronics' case is 54%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Applied Optoelectronics, so if you are interested in understanding the company at a deeper level, take a look at Applied Optoelectronics' company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Valuation: What is Applied Optoelectronics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Applied Optoelectronics is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Applied Optoelectronics's board and the CEO's background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
由於該業務可能處於一個重要的里程碑,我們認爲我們應該仔細研究應用光電公司(納斯達克股票代碼:AAOI)的未來前景。應用光電公司在美國和中國設計、製造和銷售光纖網絡產品。這家市值爲4.65億美元的公司於2023年12月31日宣佈其最新財年業績虧損5600萬美元。投資者最緊迫的擔憂是應用光電的盈利之路——它何時會實現盈虧平衡?在本文中,我們將介紹對公司增長的預期以及分析師預計何時實現盈利。
四位美國通訊分析師表示,應用光電接近盈虧平衡。他們預計,該公司將在2024年蒙受最終虧損,然後在2025年產生3,600萬美元的正利潤。因此,預計該公司將在一年多後實現盈虧平衡。爲了到2025年達到盈虧平衡點,公司每年必須以多快的速度增長?從分析師的估計來看,事實證明,他們預計該公司平均同比增長134%,這表明分析師充滿信心。如果事實證明這個利率過於激進,該公司的盈利時間可能比分析師預測的要晚得多。
納斯達克通用汽車:AAOI 每股收益增長 2024 年 4 月 11 日
但是,推動應用光電增長的潛在發展並不是本次廣泛概述的重點,但請記住,總體而言,高增長率並非不尋常,尤其是在公司處於投資期時。
在我們總結之前,有一個問題值得一提。應用光電目前的債務水平相對較高。通常,債務不應超過您股權的40%,就應用光電而言,該比例爲54%。請注意,更高的債務負債會增加投資這家虧損公司的風險。
後續步驟:
本文無意對應用光電進行全面分析,因此,如果你有興趣更深入地了解該公司,請查看應用光電公司在Simply Wall St上的公司頁面。我們還整理了一份你應該關注的重要方面清單:
估值:應用光電子今天的價值是多少?價格中是否已經考慮了未來的增長潛力?我們的免費研究報告中的內在價值信息圖有助於可視化應用光電子目前是否被市場定價錯誤。
管理團隊:由經驗豐富的管理團隊掌舵增強了我們對業務的信心——看看誰是應用光電董事會成員以及首席執行官的背景。
其他表現優異的股票:還有其他股票可以提供更好的前景並有良好的往績記錄嗎?在這裏瀏覽我們免費列出的這些優質股票。
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。