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Oclaro, Inc. (OCLR) Trending After Applied Optoelectronics Guidance

Traders are watching Oclaro, Inc. (NASDAQ:OCLR) after optical peer Applied Optoelectronics Inc (NASDAQ:AAOI) guided for a stronger-than-expected first quarter. For the period, Applied Optoelectronics sees EPS of $1-$1.02 on sales of $96.2 million, versus the Street’s estimate of $0.83 and $89.7 million, respectively. Applied’s current guidance is also better than its past outlook of $0.80-$0.88 in EPS and $87-$91 million in sales for the same time period. Given that the optical sector had trended lower in recent weeks due to the anticipated softer demand from China on the account of some customers double-ordering, Applied Optoelectronics’s new guidance has improved sentiment, which could help Oclaro shares. Oclaro stock is currently up 4.4% in the pre-market.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

According to our data, the smart money was bullish on Oclaro, Inc. (NASDAQ:OCLR) in Q4. 40 funds owned $245.33 million of Oclaro, Inc. (NASDAQ:OCLR) and accounted for 16.60% of the float on December 31, versus 41 funds and $247.62 million respectively on September 30. In terms of individual activity, Ken Hahn‘s Quentec Asset Management almost doubled its shares in the fourth quarter to 2.296 million shares at the end of December while Richard Driehaus‘ Driehaus Capital raised its stake by 38% to 3.39 million shares in the same time period.

The Bottom Line

Oclaro, Inc. (NASDAQ:OCLR) is in the spotlight due to strong first quarter guidance from a peer. For more reading, check out ‘7 most advanced countries in space technology‘.


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