AXT, Inc. AXTI surprised the market with a stellar fourth-quarter performance, surpassing revenue expectations.
The company reported revenue of $20.4 million, exceeding the anticipated $17.6 million. Comparatively, the third quarter of 2023 saw revenue at $17.4 million, with $26.8 million in the last quarter of 2022, as per data from Benzinga Pro.
Noteworthy was the decline in adjusted operating expenses to $7.5 million from $9.0 million in the previous year. However, an adjusted operating loss widened to $(2.7) million from $(0.3) in the corresponding period a year ago.
CEO Morris Young expressed confidence in the company’s trajectory, citing sustained revenue growth and customer expansion fuelled by emerging trends like Artificial Intelligence (AI). Young emphasized that AI’s advancement would necessitate substantial data transfer capabilities with heightened bandwidth, minimal distortion, and attenuation. He projected an uptick in indium phosphide demand as the optimal medium for rapid data exchange.
Post the earnings report, AXT shares surged by 82.8%, reaching $4.17 on Friday.
Several analysts revised their price forecasts for AXT in response to the quarterly update.
- Craig-Hallum upped AXT’s price target from $2.25 to $3.75. Analyst Richard Shannon, of Craig-Hallum, elevated the stock rating from Hold to Buy.
- Wedbush analyst Matt Bryson maintained an Outperform rating on AXT with an unchanged $6 price target.
- Needham analyst Charles Shi reiterated AXT as a Buy and held steady on the $5 price target.
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