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?
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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‘.