Semiconductor wafer maker AXT Q1 revenue beats estimates

Overview

• US compound wafer maker's Q1 revenue rose, beating analyst expectations

• Adjusted loss per share for Q1 was $0.01, narrower than analyst expectations

• Company completed $632.5 mln capital raise to expand indium phosphide capacity

Outlook

• Company says strong demand for indium phosphide substrates is driving capacity expansion

• AXT highlights ongoing capacity planning discussions with customers and supply chain partners

• Company expects capacity expansion to position it to meet current and future industry needs

Result Drivers

• INDIUM PHOSPHIDE DEMAND - Co said strong demand for indium phosphide substrates, used in high-speed optical data transmission for AI data centers, supported results

• CAPACITY EXPANSION - Management said recent capital raise will support expansion of indium phosphide production to address market growth

Company press release: ID:nBwbSgCPKa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for AXT Inc is $72.00, about 1.3% above its April 29 closing price of $71.07

• The stock recently traded at 582 times the next 12-month earnings vs. a P/E of 4,088 three months ago

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