On July 31, AXT Inc surged 42.35% in regular trading, trading at $63.61/share, with turnover of $381 million.
The rally was driven by the company's Q2 earnings released after market close on July 30, which massively exceeded consensus expectations. Revenue came in at $47.6 million, far surpassing the $34.1 million analyst estimate, representing a 165% year-over-year increase. Adjusted EPS of $0.19 beat the $0.07 consensus by 171%, swinging from a loss of $0.15 per share a year ago. Adjusted gross margin surged to 45.0% from 8.2% in the year-ago quarter, demonstrating significant profitability improvement. The company also reported record quarterly Indium Phosphide revenue, fueled by AI data center demand.
The stock had previously declined over 20% following B. Riley's target price cut from $73 to $52 and broader optical communications sector weakness. The blowout earnings catalyzed a sharp reversal, with oversold recovery momentum amplifying the rebound. FactSet consensus average price target stands at $96.50.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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