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

AXT (NASDAQ:AXTI) posted its quarterly earnings data on Thursday. The semiconductor company reported ($0.05) earnings per share (EPS) 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 during the quarter, compared to analysts’ expectations 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 Stock Performance

Shares of NASDAQ:AXTI traded up $4.52 on Friday, hitting $28.33. 9,481,087 shares of the company’s stock were exchanged, compared to its average volume of 7,617,960. AXT has a 1-year low of $1.13 and a 1-year high of $30.80. The company has a market capitalization of $1.57 billion, a PE ratio of -54.45 and a beta of 1.96. The firm’s 50-day moving average is $19.48 and its 200 day moving average is $10.73.

Key Stories 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 Upgrades and Downgrades

AXTI has been the topic of several research reports. Northland Securities set a $20.00 price target on shares of AXT in a research report on Monday, December 22nd. Craig Hallum reissued a “buy” rating on shares of AXT in a research report on Friday, January 9th. B. Riley Financial upped their price objective on AXT to $21.00 and gave the stock a “neutral” rating in a research report on Friday. Wedbush lifted their target price on AXT from $8.50 to $28.00 and gave the company an “outperform” rating in a report on Friday. Finally, Wall Street Zen raised AXT from a “sell” rating to a “hold” rating in a research note on Saturday, February 14th. Two analysts have rated the stock with a Buy rating, two have given 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 a consensus target price of $22.80.

Insider Activity at AXT

In other news, CEO Morris S. Young sold 35,000 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $12.05, for a total transaction of $421,750.00. Following the completion of the sale, the chief executive officer owned 2,495,564 shares in the company, valued at approximately $30,071,546.20. The trade was a 1.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David C. Chang sold 25,000 shares of the company’s stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $14.84, for a total transaction of $371,000.00. Following the completion of the transaction, the director owned 132,744 shares of the company’s stock, valued at approximately $1,969,920.96. The trade was a 15.85% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 110,000 shares of company stock valued at $1,369,000. 8.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On AXT

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. XTX Topco Ltd purchased a new position in shares of AXT during the second quarter worth about $42,000. Jefferies Financial Group Inc. purchased a new position in AXT during the 3rd quarter worth approximately $52,000. State of Wyoming acquired a new position in AXT during the fourth quarter worth approximately $69,000. Creative Planning acquired a new position in AXT during the second quarter worth approximately $86,000. Finally, Kestra Advisory Services LLC purchased a new stake in AXT in the fourth quarter valued at approximately $98,000. 49.52% of the stock is owned by hedge funds and other institutional investors.

About AXT

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.