Published on 24 Jan 2024 on Simply Wall St. via Yahoo Finance

Loss-Making Applied Optoelectronics, Inc. (NASDAQ:AAOI) Set To Breakeven

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 various fiber-optic networking products worldwide. With the latest financial year loss of US$66m and a trailing-twelve-month loss of US$62m, the US$616m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Applied Optoelectronics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Applied Optoelectronics

According to the 3 industry analysts covering Applied Optoelectronics, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$3.7m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 116% is expected, 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.