AXT Q3 revenue jumps 162% on strong customer demand

Overview

• Compound semiconductor wafer maker's Q3 revenue rose 162% yr/yr, beating analyst expectations

• Adjusted net income for Q3 beat analyst expectations

• Growth driven by strong indium phosphide demand and capacity expansion

Outlook

• Company did not provide specific financial guidance for the next quarter or full year in its press release

Result Drivers

• INDIUM PHOSPHIDE DEMAND - Co said Q3 growth was driven by strong customer demand for indium phosphide material

• CAPACITY EXPANSION - Co said productivity gains and expanded capabilities for large diameter products increased indium phosphide revenue opportunity

• MARGIN IMPROVEMENT - Gross margin increased significantly compared to prior periods

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for AXT, Inc. is $93.00, about 44.5% above its October 28 closing price of $64.38

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 134 three months ago

Reuters Recommended Reads

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

• Oct 27 - Hong Kong's ASMPT Q3 revenue rises 49% on AI demand

• Oct 27 - Switzerland's INFICON Q3 sales jump, lifts FY outlook on firm semiconductor demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)