Shares of Applied Optoelectronics, Inc. AAOI fell 29% in morning trading on Friday after posting its second-quarter fiscal 2017 financial results. While the fiber-optic component supplier beat Q2 estimates, it reported disappointing Q3 guidance.Applied Optoelectronics expects “softer-than-expected demand for our 40G solutions with one of our large customers that will offset the sequential growth and increased demand we expected in 100G.”As a result, the company’s revenue guidance of $107-$115 million fell below Wall Street’s expectations of $123 million, as did the company’s projected earnings range of $1.30-$1.43 per share.However, Applied Optoelectronics did beat estimates for its second-quarter. The company posted earnings of $1.43 per share, beating our consensus estimate of $1.29 per share. The company also saw revenue figures of $117.37 million, beating our consensus estimate of $115.64 million and representing a 112% increase year-over-year.“We are pleased with our team’s continued solid execution this quarter. We believe AAOI has a leading position in the advanced optics market and we continue to expand with our existing customer base as well as engage with new customers for 100G technologies and beyond,” said President and CEO Dr. Thompson Lin.“We believe our ability to leverage our vertical integration and proprietary manufacturing processes to drive greater efficiencies and shorten our production cycle times sets AOI apart from others in the industry.”AAOI remains a Zacks Rank #1 (Strong Buy), with a Growth score of ‘A.’ The company’s stock has gained roughly 200% this year.Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research