AXT (NASDAQ:AXTI) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• AXT reported quarterly EPS of $0.41, beating the consensus estimate of $0.31 by $0.10. The company posted a 3.23% net margin and 0.96% return on equity.
• Despite the earnings beat, AXT shares fell 5.4% to $60.88 during Thursday trading. The stock has traded between $6.83 and $143.16 over the past year and carries a highly elevated P/E ratio of 3,044.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $77.00; ratings range from Buy to Sell. AXT’s subsidiary also secured agreements for up to approximately $545 million in private-equity financing to expand semiconductor-materials production.

AXT (NASDAQ:AXTI - Get Free Report) posted its earnings results on Thursday. The semiconductor company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.10, FiscalAI reports. AXT had a net margin of 3.23% and a return on equity of 0.96%.

AXT Stock Down 5.4%

Shares of NASDAQ:AXTI traded down $3.50 during midday trading on Thursday, hitting $60.88. The stock had a trading volume of 11,858,347 shares, compared to its average volume of 10,108,816. The company has a market cap of $3.99 billion, a P/E ratio of 3,044.00 and a beta of 1.86. AXT has a 12 month low of $6.83 and a 12 month high of $143.16. The business's 50-day simple moving average is $66.87 and its 200-day simple moving average is $63.72.

Insider Buying and Selling

In related news, Director Leonard Leblanc sold 4,000 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $96.07, for a total value of $384,280.00. Following the completion of the sale, the director directly owned 113,129 shares in the company, valued at $10,868,303.03. The trade was a 3.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 5.97% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts recently commented on AXTI shares. Needham & Company LLC upgraded shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 price objective for the company in a research report on Friday, July 31st. B. Riley Financial decreased their target price on AXT from $73.00 to $52.00 and set a "neutral" rating for the company in a research note on Tuesday, July 28th. Zacks Research lowered AXT from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 29th. UBS Group set a $90.00 price objective on AXT in a research report on Friday, July 31st. Finally, Weiss Ratings raised AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $77.00.

AXT News Roundup

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT’s majority-owned Beijing Tongmei Xtal Technology subsidiary entered agreements for up to RMB 3.67 billion, or approximately $545 million, in private-equity financing. The capital could help Tongmei expand production and strengthen AXT’s exposure to demand for semiconductor materials used in AI and other advanced applications. The transaction may also improve liquidity, although investors will need to assess any dilution or changes in ownership. AXT Announces RMB 3.67 Billion Financing
• Positive Sentiment: Wedbush reiterated its Buy rating on AXT, providing continued sell-side support for the company’s growth outlook. Wedbush Keeps Buy Rating on AXT
• Neutral Sentiment: Recent analysis compares AXT with TTM Technologies as potential AI-infrastructure investments. The comparison highlights AXT’s AI-related growth opportunity but also its China exposure and elevated valuation, factors that could increase volatility and make investors more selective. TTMI vs. AXTI AI Infrastructure Comparison
• Negative Sentiment: AXTI recently moved above its 200-day moving average, a generally constructive technical signal, but the accompanying “time to sell?” discussion may be encouraging short-term profit-taking after the stock’s substantial advance. AXT Crosses Above Two-Hundred-Day Moving Average

About AXT

AXT, Inc develops and manufactures compound semiconductor substrates used as the foundation for various high-performance electronic and optoelectronic devices. Its principal products include gallium arsenide (GaAs), indium phosphide (InP), and germanium substrates, along with other specialty materials such as gallium antimonide and indium arsenide.

The company's substrates are used in applications including wireless communications, fiber-optic and data-center networks, lasers, light-emitting diodes, solar cells, consumer electronics, and aerospace and defense systems.

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