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On Wednesday, Applied Micro Circuits (AMCC – 167-3/4) tallied second-quarter earnings of 26 cents per share, besting analysts' projections by three cents per share. According to I/B/E/S International
, this marked the company's sixth straight positive earnings surprise. AMCC also declared a two-for-one stock split.
In yesterday's trading, the stock fell in sympathy with the broader market, stepping back nearly 11 points for its worst closing level since August 16. Earlier this week, the security's 10-day and 20-day moving averages completed a bearish crossover, which can be an indication of near-term weakness. AMCC has also dipped beneath its 10-week moving average, a trendline it hasn't finished a week below since late June. The security should receive a boost today, though, as it is poised to open more than 13 points, or over eight percent, higher in response to its positive fundamental news.
With AMCC's recent struggles, pessimism toward this technology issue has been on the rise. On September 27, Schaeffer's put/call open interest ratio (SOIR) on the equity stood at 0.49, which is significantly less than its current SOIR reading of 0.78. Please visit Schaeffer's Daily Sentiment to learn more about SOIR.