AXT (AXTI) Reports Q3 Loss, Lags Revenue Estimates

Company Performance - AXT reported a quarterly loss of $0.05 per share, which was better than the Zacks Consensus Estimate of a loss of$ 0.06, and an improvement from a loss of $0.12 per share a year ago, representing an earnings surprise of 16.67% [1] - The company posted revenues of$ 23.65 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.97%, but showing an increase from year-ago revenues of $17.37 million [2] - AXT has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Stock Outlook - AXT shares have increased by approximately 15% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$ 0.02 on $27.8 million in revenues for the coming quarter and -$ 0.13 on $104.34 million in revenues for the current fiscal year [4][7] - The current estimate revisions trend for AXT is mixed, resulting in a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Electronics - Semiconductors industry, to which AXT belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5]