AXTI Earnings Prediction
The chart below shows how AXTI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AXTI sees a +0.66% change in stock price 10 days leading up to the earnings, and a +5.83% change 10 days following the report. On the earnings day itself, the stock moves by -0.51%. This data can give you a slight idea of what to expect for the next quarter's release.
AXTI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
25.11M
22.89%
6.17%
Gross Margin
17.56%
-22.47%
-29.42%
Operating Margin
-24.56%
40.91%
81.12%
Net Margin
-22.53%
22.45%
84.52%
EPS
-0.12
-33.33%
71.43%
No Data Available
AXTI Earnings Analysis
AXT Inc Corporation (AXTI.O) Earnings Conference Call
Positive
Quarterly Revenue Growth: Revenue for Q4 2024 was $25.1 million, up from $23.6 million in Q3 2024 and $20.4 million in Q4 2023, indicating strong growth.
Revenue Increase Overview: Fiscal year 2024 revenue reached $99.4 million, a 31% increase from $75.8 million in fiscal year 2023, reflecting growth across all product categories.
Gross Margin Improvement: Non-GAAP gross margin for fiscal year 2024 improved to 24.3%, up from 18.1% in fiscal year 2023, showcasing better cost management and operational efficiency.
Cloud Market Penetration: The company successfully penetrated the cloud and data center infrastructure market, marking significant revenue growth in this sector.
Portfolio Expansion and Revenue Opportunities: AXT has expanded its portfolio of raw material companies, creating a valuable supply chain and new revenue opportunities.
Substrate Innovation Impact: The introduction of 8-inch gallium arsenide and 6-inch indium phosphide substrates is expected to drive innovation and improve performance across product families.
Non-GAAP Net Loss Improvement: The company reported a 40% improvement in non-GAAP net loss for fiscal year 2024, indicating better financial health compared to the previous year.
Joint Ventures Revenue Growth: AXT's consolidated joint ventures generated almost $32 million in revenue in 2024, up 12% from the prior year, highlighting the success of their strategic investments.
Co-Packaged Optics Opportunity: The company is actively working on co-packaged optics, which is seen as a major opportunity for future growth.
Negative
Q4 2024 Revenue Performance: Revenue growth in Q4 2024 was only $25.1 million, which, while an increase from Q3 2024, is still below expectations due to trade restrictions affecting indium phosphide sales.
Gross Margin Decline: Non-GAAP gross margin fell to 17.9% in Q4 2024 from 24.3% in Q3 2024, indicating a significant decline in profitability, primarily due to lower recycling benefits and under-absorption of manufacturing overhead.
Operating Expenses Increase: Operating expenses increased to $9.9 million in Q4 2024, up from $9.0 million in Q3 2024, driven by rising legal and R&D costs, which could indicate financial strain.
Operating Loss Increase: The company reported a non-GAAP operating loss of $5.4 million in Q4 2024, worsening from a loss of $2.6 million in Q3 2024, highlighting ongoing financial challenges.
Liquidity Concerns: Cash and cash equivalents decreased by $5.0 million to $33.8 million, indicating potential liquidity issues as the company navigates its financial landscape.
Trade Restrictions Impact Revenue: The anticipated impact of trade restrictions on indium phosphide is expected to delay $4 million to $5 million in revenue in Q1 2025, which could hinder growth prospects in the near term.
Projected Net Loss Q1 2025: The company expects a non-GAAP net loss of $0.13 to $0.15 per share for Q1 2025, reflecting continued financial difficulties and uncertainty in revenue generation.
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AXTI Earning Call Sentiment
AXT, Inc. (NASDAQ:AXTI) Q4 2024 Earnings Call Transcript
AXTI.O
-3.03%Positive
The earnings call reveals mixed signals. While revenue increased and long-term growth is expected, short-term challenges like reduced gross margins, increased operating expenses, and significant net losses are concerning. The Q&A highlights potential export restrictions impacting Q1 sales and unclear management responses, further contributing to uncertainty. The absence of a share repurchase program and customer concentration risk add to the negative outlook. Despite some positive aspects, such as growth in fiscal year revenue and optimism for 2025, the immediate negative factors are likely to outweigh, predicting a negative stock price reaction.
