Insight Into AXT’s Analyst Adjustments After Q4 Earnings – AXT (NASDAQ:AXTI)Insight Into AXT’s Analyst Adjustments After Q4 Earnings

By: Alex Freidmen

Fourth Quarter Report Overview

AXT, Inc. AXTI presented a robust fourth-quarter sales report that exceeded analysts’ anticipations.

Solid Revenue Performance

The company’s revenue achieved $20.4 million, surpassing the consensus of $17.6 million. This marked a positive stride compared to $17.4 million in Q3 of 2023 and $26.8 million in Q4 of 2022, as per data from Benzinga Pro.

Operational Expense Optimization

Adjusted operating expenses were trimmed to $7.5 million from $9.0 million in the previous year. AXT reported an adjusted operating loss of $(2.7) million, which widened from $(0.3) in the corresponding quarter of the preceding year.

CEO’s Optimistic Outlook

Morris Young, AXT’s chief executive officer, expressed confidence in the continued growth factors driving revenue and customer expansion. He highlighted new opportunities arising from AI that could lead to increased demand for indium phosphide for rapid data transfer.

Market Reaction

Following the positive quarterly results, AXT shares surged by 82.8%, reaching a trading price of $4.17 on Friday.

Analysts’ Revisions and Price Targets

  • Craig-Hallum: Raised price target on AXT from $2.25 to $3.75. Analyst Richard Shannon upgraded the stock from Hold to Buy.
  • Wedbush: Analyst Matt Bryson reiterated AXT as Outperform and maintained a price target of $6.
  • Needham: Analyst Charles Shi reiterated AXT as Buy and kept a $5 price target.

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