Alliance Fiber Optic Products: Zacks’Bear of the Day Play

Alliance Fiber Optic Products (AFOPSnapshot Report) recently reported earnings and missed the Zacks Consensus Estimate as well as the Wall Street Consensus Estimate. The stocks has slipped to a Zacks Rank #5 (Strong Sell) and today it is the Bear of the Day.The Numbers

AFOP missed the Zacks Consensus Estimate of $0.23 by $0.16 for a 78% negative earnings surprise. Revenues came in a little below expectations at $16 million for an 11% negative revenue surprise.

Description

Alliance Fiber Optic Products makes and sells various fiber optic components and integrated modules for communications equipment manufacturers and service providers. The company is widely reported as having a deal with Google to help Google Fiber reach consumers. Alliance Fiber Optic Products was founded in 1995 and is headquartered in Sunnyvale, California.

Earnings History

The recent earnings history for AFOP is rather weak with five of the last six reports coming below the Zacks Consensus Estimate. The last three reports were misses, with negative earnings surprises of 78%, 44% and 3% respectively.

Estimates

The 2016 Zacks Consensus estimate has been moving lower. The number stood at $1.40 in September of last year, but slipped to $1.14 in October. It has since fallen to $1.09.

There are no estimates at the current time for 2017.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.

Follow Brian Bolan on twitter at @BBolan1

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Stocks Under $10, an investor service , where he recommends the stocks in the portfolio.

Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.

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