AXT Earnings: Here’s Why Investors are Not Excited Now
AXT Inc. (NASDAQ:AXTI) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.06%.
AXT Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $0.04 in the year-earlier quarter.
Revenue: Decreased 5.37% to $23.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: AXT Inc. reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $-0.06. It beat the average revenue estimate of $23.13 million.
Quoting Management: “Our results for the second quarter came in within our guidance range, with revenue improving modestly from the prior quarter,” said Morris Young, chief executive officer. “We continued to see an evolution of our business as our revenues further diversified across our substrate product portfolio. While the wireless market remains soft, germanium substrates showed strong growth in the second quarter. Germanium substrates are gaining momentum with increasing demand from CPV terrestrial solar applications. As we continue to work through challenges in the gallium arsenide substrate side of our business, it is encouraging to see growth in other areas in which we have invested over the past two years. We continue to manage our expenses carefully and plan our business conservatively in order to weather the near-term environment and position ourselves for success as the market improves.”
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