
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
The financial performance of AXT Inc. demonstrates significant improvement, with operating margin (OM) rising from -34.0% to -1.4% in the second quarter, attributed to increased volume and gross margin (GM). The gross margin saw a notable increase, reaching 22.4%, up from 8.2% in the previous quarter, driven by a favorable shift in product mix and higher demand for indium phosphide (InP) substrates. Furthermore, revenues from InP and gallium arsenide (GaAs) substrates increased substantially, with InP revenue jumping from $3.6 million to $13.1 million and GaAs revenue growing 21% quarter-over-quarter to $7.5 million, highlighting a period of solid growth linked to rising demand for III-V materials in the telecommunications sector.
Bears say
AXT Inc. demonstrated a concerning financial performance in Q2, with total revenues of $18.0 million, reflecting a significant decline of 7.4% quarter-over-quarter and 35.6% year-over-year. Additionally, the company faced a decrease in raw material sales, which dropped 20% from the previous quarter, contributing to a high raw material cost that comprised approximately 38% of total revenues, well above the five-year average of 25%. Compounding these challenges are macroeconomic pressures, technological hurdles, and export licensing issues that hinder growth and revenue stability, particularly affecting shipments and the ability to meet expected sales levels.
This aggregate rating is based on analysts' research of AXT and is not a guaranteed prediction by Public.com or investment advice.
AXT (AXTI) Analyst Forecast & Price Prediction
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