Strong Q4 Numbers Surpass Expectations
AXT, Inc. AXTI exceeded fourth-quarter sales estimates, announcing revenues of $20.4 million, surpassing the anticipated $17.6 million.
Data revealed that the company witnessed revenue of $17.4 million in the third quarter of 2023, and $26.8 million in the final quarter of 2022, according to Benzinga Pro.
Financial Maneuvers and Growth Prospects
Adjusted operating expenditures dropped to $7.5 million from the previous year’s $9.0 million. However, there was an adjusted operating loss of $(2.7) million, widening from $(0.3) million the previous year.
The CEO, Morris Young, outlined the company’s optimism, stating, “The trends that have fueled our revenue and customer expansion remain robust. New catalysts such as AI offer significant incremental opportunities in data transfer requirements, emphasizing the necessity for increased bandwidth, low attenuation, and low distortion. Indium phosphide appears poised as the premier platform for swift data exchange amidst this environment.”
Following the report, AXT shares surged by 82.8%, reaching a trading price of $4.17 on Friday.
Analysts’ Take on AXT’s Future
Post-announcement, several analysts altered their price targets for AXT:
- Craig-Hallum: The firm raised AXT’s price target from $2.25 to $3.75. Analyst Richard Shannon promoted the stock from Hold to Buy.
- Wedbush: Matt Bryson reaffirmed AXT as Outperform with an unchanged $6 price target.
- Needham: Charles Shi maintained a Buy rating for AXT and retained a price target of $5.
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