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AXT Q3 revenue jumps 162% on strong customer demand

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$73.40 mln

$66.006 mln (4 Analysts)

Q3 Adjusted Net Income

Beat

$26.80 mln

$20.72 mln (3 Analysts)

Q3 Adjusted Gross Margin

56.10%


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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