Semiconductor materials firm AXT Q3 revenue beats estimates

Reuters
Oct 31
Semiconductor materials firm AXT Q3 revenue beats estimates

Overview

  • AXT Q3 revenue increases to $28 mln, beating analyst expectations

  • Adjusted EPS for Q3 beats estimates, reflecting improved performance

  • Indium phosphide revenue grows over 250% sequentially, reaching a three-year high

Outlook

  • Company anticipates growth opportunities in 2026 driven by data center trends

  • AXT focuses on gross margin recovery and expense discipline for future growth

Result Drivers

  • INDIUM PHOSPHIDE DEMAND - Co reports over 250% sequential growth in indium phosphide revenues, driven by data center applications

  • GROSS MARGIN FOCUS - Co aims to drive gross margin recovery and expansion through operating expense discipline and inventory reduction

  • DATA CENTER TRENDS - Co sees strong market trends in data center upgrades as a key opportunity for growth in 2026

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$28 mln

$19.80 mln (5 Analysts)

Q3 Adjusted EPS

Beat

-$0.03

-$0.12 (5 Analysts)

Q3 Adjusted Net Income

Beat

-$1.20 mln

-$5.42 mln (4 Analysts)

Q3 Adjusted Gross Margin

22.40%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 $4.00, about 76.7% below its October 29 closing price of $7.07

Press Release: ID:nBw51538Xa

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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.)

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