Technology

Market Reacts Strongly to AXT Inc (NASDAQ:AXTI) Q2 Financial Results

AXT Inc (NASDAQ:AXTI)

AXT Inc (NASDAQ:AXTI)

AXT Inc (NASDAQ:AXTI) shares popped today after the company released its Q2 financial results. AXTI shares gained over 15% to end the day at $8.80 which represents a new 52-week high. Volumes were strong – almost seven times the 30-day, daily average.

AXT Inc (NASDAQ:AXTI)
1 month daily candlebar graph for AXT Inc (NASDAQ:AXTI)

AXT Inc (NASDAQ:AXTI) revenue for Q2 2017 was $23.6 million, compared with $20.6 million for Q1 2017. Gross margin for Q2 was 30.8%, compared with 30.5% for Q1. Operating expenses were $5.0 million, compared with $4.9 million for Q1 2017. Operating profit was $2.3 million, compared with $1.4 million for Q1 2017. Net profit was $1.9 million, or $0.05 per diluted share, for Q2 2017 compared with a net profit of $0.7 million, or $0.02 per diluted share, for Q1 2017.

Morris Young, CEO of AXT Inc (NASDAQ:AXTI) stated “Across our portfolio, we are seeing emerging technologies and strengthening demand from established applications that are driving growth in each of our substrate product categories. As a result, we achieved record revenue in indium phosphide substrates in Q2, and posted solid improvement in semi-insulating gallium arsenide, semi-conducting gallium arsenide, and germanium substrates. Our customer and revenue base continues to diversify, giving us a broad-based opportunity for continued business expansion.”

AXT Inc (NASDAQ:AXTI) manufactures semiconductor substrates using a proprietary technology. It offers semi-insulating gallium with arsenic (GaAs) substrates, which are used globally for applications in power amplifiers for wireless devices, transistors, and solar cells for drones.

AXT Inc (NASDAQ:AXTI) shareholders have been well compensated by the market. AXTI shares are up over 80% YTD and up over 140% for the year. Five investment firms follow AXT Inc (NASDAQ:AXTI). Two rate the shares as a “Strong Buy”, Two rate the shares as a “Buy”, and one rates AXTO shares as a “Hold”. Their consensus price target is $9.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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