AXT Earnings: Everything You Must Know Now

AXT Inc. (NASDAQ:AXTI) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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AXT Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.08 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 4.64% to $22.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AXT Inc. reported adjusted EPS loss of $0.08 per share. By that measure, the company missed the mean analyst estimate of $-0.07. It beat the average revenue estimate of $20.26 million.

Quoting Management: “Revenue trends in the first quarter came in largely as expected in each of our product categories, although our performance in germanium substrates and raw materials outperformed our plan,” said Morris Young, chief executive officer. “With our industry continuing to evolve, both in terms of the customer landscape and technology trends, we experienced a continuation of the softness in semi-insulating substrates that we began to see in the second half of 2012. The wireless industry, while growing in terms of devices, is transitioning to new technologies for certain devices in order to maximize cost efficiency, reduce size requirements and increase performance capabilities. These transitions are likely to occur throughout 2013, and continue to constrain our semi-insulating substrate results as customers evaluate their ongoing requirements. However, we are seeing renewed growth in our semi-conducting gallium substrate business as well as improving demand for our indium phosphide substrates, germanium substrates and raw materials. While the changes to the wireless side of our business have been challenging, we remain optimistic that new opportunities, coupled with improving market conditions in other product lines will allow us to drive improved shareholder value in 2013.”

Key Stats (on next page)…

Revenue increased 18.33% from $18.93 million in the previous quarter. EPS decreased to $-0.08 in the quarter versus EPS of $-0.02 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from $0 to a loss $0.03. For the current year, the average estimate has moved down from a profit of $0.05 to a loss of $0.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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