Shares of Applied Optoelectronics (NASDAQ: AAOI) surged nearly 15% in after-hours trading on Wednesday, following the company's third-quarter 2024 earnings release.

Although the fiber-optic networking company reported a larger-than-expected loss per share, its revenue for the quarter beat Wall Street estimates. Applied Optoelectronics posted an adjusted loss of $0.21 per share, missing analysts' expectations of a $0.17 loss. However, the company's revenue of $65.15 million exceeded the consensus estimate of $62.60 million, representing a 4.16% year-over-year increase.

Investors appeared to be focusing on the better-than-anticipated revenue performance, which could signal improving demand for the company's products. The after-hours surge suggests that the market is optimistic about Applied Optoelectronics' revenue growth prospects, despite the disappointing earnings miss.