These Analysts Revise Their Forecasts On AXT Following Q4 Results

AXT, Inc. AXTI reported better-than-expected fourth-quarter sales on Thursday.

Revenue of $20.4 million beat the consensus of $17.6 million. Revenue was $17.4 million in the third quarter of 2023 and $26.8 million in the last quarter of 2022, according to data from Benzinga Pro.

Adjusted operating expenses declined to $7.5 million from $9.0 million the prior year. The company reported an adjusted operating loss of $(2.7) million, which widened from $(0.3) a prior year quarter.

Morris Young, chief executive officer said, “We believe that the trends that have driven our revenue and customer expansion remain very much intact, with new catalysts such as AI providing strong incremental opportunity. AI will drive up the need for massive data transfer requirements with increased bandwidth, low attenuation and low distortion. We believe this will result in increased demand for indium phosphide as the best platform for rapid data transfer.”

AXT shares gained 82.8% to trade at $4.17 on Friday.

These analysts made changes to their price targets on AXT after the company reported quarterly results.

• Craig-Hallum raised the price target on AXT from $2.25 to $3.75. Craig-Hallum analyst Richard Shannon upgraded the stock from Hold to Buy.
• Wedbush analyst Matt Bryson reiterated AXT with an Outperform and maintained a $6 price target.
• Needham analyst Charles Shi reiterated AXT with a Buy and maintained a $5 price target.

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