Shares of Applied Optoelectronics (NASDAQ:AAOI), a developer and manufacturer of advanced optical products, were tumbling today as investors processed the company's first-quarter 2020 financial results that were released Thursday. At the close on Friday, shares were down 16.5%.
The company reported revenue of $40.5 million, which was down 23% year over year and short of analysts' consensus estimate of $45 million. Meanwhile, its adjusted loss per share of $0.44 was worse than Wall Street's consensus estimate of $0.38.
CEO Thompson Lin said in the company's first-quarter press release, "We are disappointed with our first-quarter financial results, which were impacted by the COVID-19 pandemic, including an unanticipated shutdown of our China factory of nearly three weeks' duration."
Adding to investor pessimism was the fact that Rosenblatt Securities analyst Ryan Koontz downgraded Applied's stock today from buy to neutral, and lowered its price target from $11.50 to $10.
While many publicly traded companies have stopped issuing guidance right now, Applied Optoelectronics' management said that the company expects revenue in the range of $55 million to $60 million in the second quarter.
Additionally, management said that Applied Optoelectronics will have an adjusted loss per share in the range of $0.20 to $0.28 in the second quarter.