AXT Q2 revenue more than doubles, beats estimates on strong data center demand
AXTI•Demand and margin drivers
The company said strong customer demand for data center optical connectivity drove revenue growth.
AXT also reported record quarterly indium phosphide revenue, and said the results reflected increased manufacturing capacity and improved productivity.
Q2 results beat estimates
US compound semiconductor maker AXT said second-quarter revenue more than doubled and beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $47.60 mln | $34.09 mln (5 Analysts) |
| Q2 Adjusted Net Income | Beat | $11.90 mln | $4.41 mln (4 Analysts) |
| Q2 Adjusted Gross Margin | 45.00% |
Outlook and analyst coverage
The company did not provide specific financial guidance for the current or future periods.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 151.6% above its July 29 closing price of $36.97.
The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 1,232 three months ago.
