AXT (NASDAQ:AXTI) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

AXT (NASDAQ:AXTI) released its quarterly earnings results on Thursday. The semiconductor company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.01), FiscalAI reports. AXT had a negative net margin of 25.22% and a negative return on equity of 11.19%. The firm had revenue of $23.04 million for the quarter, compared to the consensus estimate of $24.24 million.

Here are the key takeaways from AXT’s conference call:

• AXT said demand for indium phosphide is very strong — backlog topped $60 million and the customer base is expanding to Tier‑One laser and transceiver makers, with management expecting sequential revenue growth in Q1 driven by AI/data‑center builds.
• The company reported Q4 revenue of $23.0M and a non‑GAAP net loss of $2.6M, with inventory rising to $81.7M, highlighting near‑term profitability pressure despite improving margins versus last year.
• AXT strengthened its balance sheet via a late‑December public offering that boosted cash, cash equivalents and investments to $128.4 million, which management says will fund capacity expansion and six‑inch product investment.
• For Q1 management is highly confident of recognizing about $26 million of revenue that either has permits or doesn’t require them, and they guide to non‑GAAP net loss of $0.02–$0.04 per share (OpEx ~ $9M), noting outcomes still depend on permit timing.
• Vertical integration advanced: subsidiaries Boyu and Jinmei increased PBN/crucible and high‑quality indium supply, which management says reduces material risk and supports scaled wafer production.

AXT Price Performance

NASDAQ AXTI traded up $4.71 during trading on Friday, reaching $28.52. 9,667,655 shares of the company’s stock traded hands, compared to its average volume of 7,617,960. AXT has a 12-month low of $1.13 and a 12-month high of $30.80. The firm has a market cap of $1.58 billion, a price-to-earnings ratio of -54.88 and a beta of 1.96. The company’s 50 day simple moving average is $19.48 and its two-hundred day simple moving average is $10.73.

Key Headlines Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Wedbush sharply raised its price target to $28 (from $8.50) and kept an “outperform” rating, giving renewed analyst support and validating upside expectations despite the target being near the current price. The Fly: Wedbush raise
• Positive Sentiment: Unusually large options activity: investors bought 6,246 call contracts (about 66% above the average daily call volume), a short-term bullish signal that likely amplified buying pressure. (No external link)
• Positive Sentiment: Management noted some export permits have been received in 2026 and said it expects to be in a strong position for sequential revenue recovery, a constructive operational update after Q4 export headwinds. BusinessWire: Q4 results & management comments
• Neutral Sentiment: Earnings call transcript is available for investors who want detail on management’s outlook and permit timing; useful for assessing whether guidance supports continued share strength. Seeking Alpha: Earnings call transcript
• Neutral Sentiment: Reported short-interest data shows effectively zero reported short interest and a 0.0 days-to-cover figure — the data appears uninformative/odd and doesn’t point to immediate short-covering pressure. (No external link)
• Negative Sentiment: Q4 results missed expectations: AXT reported ($0.08) EPS (vs. consensus ~$-0.04) and $23.04M revenue (below estimates). EPS and revenue misses plus negative margins weigh on the fundamentals. Zacks: Q4 miss
• Negative Sentiment: External coverage flagged export-permit hurdles that cloud near-term demand for AI-chip materials — a reminder that regulatory/export timing remains a risk to revenue recovery. Investing.com / Seeking Alpha: export hurdles
• Negative Sentiment: Pacific Ridge Capital fully exited its AXT stake (1.7M shares sold), indicating at least one institutional investor reduced exposure after the recent run-up. Fool: Pacific Ridge sells stake

Analyst Ratings Changes

A number of brokerages recently issued reports on AXTI. B. Riley Financial upped their price target on shares of AXT to $21.00 and gave the stock a “neutral” rating in a research note on Friday. Northland Securities set a $20.00 target price on AXT in a research report on Monday, December 22nd. Craig Hallum restated a “buy” rating on shares of AXT in a research report on Friday, January 9th. Wall Street Zen raised shares of AXT from a “sell” rating to a “hold” rating in a report on Saturday, February 14th. Finally, Wedbush increased their price objective on shares of AXT from $8.50 to $28.00 and gave the stock an “outperform” rating in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $22.80.

Insider Activity at AXT

In related news, Director David C. Chang sold 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $14.84, for a total value of $371,000.00. Following the completion of the transaction, the director owned 132,744 shares of the company’s stock, valued at $1,969,920.96. The trade was a 15.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Morris S. Young sold 35,000 shares of the stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $12.05, for a total value of $421,750.00. Following the sale, the chief executive officer directly owned 2,495,564 shares in the company, valued at $30,071,546.20. This trade represents a 1.38% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 110,000 shares of company stock worth $1,369,000. 8.80% of the stock is currently owned by corporate insiders.

Institutional Trading of AXT

Hedge funds have recently added to or reduced their stakes in the company. XTX Topco Ltd increased its position in shares of AXT by 173.7% in the fourth quarter. XTX Topco Ltd now owns 35,201 shares of the semiconductor company’s stock valued at $576,000 after buying an additional 22,338 shares in the last quarter. SummitTX Capital L.P. purchased a new stake in shares of AXT during the fourth quarter worth about $228,000. Tudor Investment Corp ET AL purchased a new stake in shares of AXT during the fourth quarter worth about $278,000. Millennium Management LLC raised its position in shares of AXT by 577.2% during the 4th quarter. Millennium Management LLC now owns 205,503 shares of the semiconductor company’s stock worth $3,360,000 after purchasing an additional 175,158 shares during the last quarter. Finally, Gotham Asset Management LLC purchased a new position in AXT in the 4th quarter valued at about $1,041,000. 49.52% of the stock is owned by hedge funds and other institutional investors.

AXT Company Profile

AXT, Inc (NASDAQ: AXTI) is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT’s product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.