AFOP Continues Bull Run - Analyst Blog
July 15 2013 - 10:00AM
Zacks
Shares of fiber optic components
supplier Alliance Fiber Optic Products Inc. (AFOP)
have continuously been on an upswing since it announced its second
quarter 2013 preliminary results on Jul 1. Currently, the shares
are trading near its 52-week high of $32.34, which it attained on
Jul 11. As the detailed financial results are awaited on Jul 23, we
expect the stock to continue its bull run, unless there is any
unlikely twist in the tale.
With strong customer demand, Alliance Fiber Optic expects second
quarter revenues to be over $19 million, which represent a 55%
sequential increase. The latest revenue projection is well above
the company’s revised revenue guidance of $16 million provided in
May, when it increased its revenue expectations from $14 million
provided during the first quarter 2013 conference call.
The steady improvement in revenue expectations is backed by a solid
customer pull for Alliance Fiber Optic products. In order to meet
this higher market demand, the company has diligently focused on
capacity expansion programs and remains upbeat on achieving strong
quarterly results.
The forward P/E ratio of Alliance Fiber Optic is also lucrative at
18.96 with an expected sales growth of 6.97%. The current Zacks
Consensus Estimate for second quarter earnings is pegged at 47
cents, which equates to an astounding 235.71% year-over-year
increase. The stupendous market expectations are also evident in a
40.36% rise in share prices from $21.88 at market close on Jul 1
(when it released its preliminary results) to $30.71 on Jul
12.
Headquartered in Sunnyvale, Calif., Alliance Fiber Optic designs
and manufactures a broad range of high-performance fiber optic
components and integrated modules for communications equipment
manufacturers to help them deliver optical networking systems for
long-haul, enterprise, metropolitan and last mile access segments
of the communications network.
Alliance Fiber Optic currently has a Zacks Rank #1 (Strong Buy).
Other companies in the industry worth mentioning include
Advanced Micro Devices, Inc. (AMD), Diodes
Incorporated (DIOD) and Integrated Device
Technology, Inc. (IDTI), each carrying a Zacks Rank #1
(Strong Buy).
ALLIANCE FIBER (AFOP): Free Stock Analysis Report
ADV MICRO DEV (AMD): Free Stock Analysis Report
DIODES INC (DIOD): Free Stock Analysis Report
INTEGR DEVICE (IDTI): Free Stock Analysis Report
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