The earnings call presented a mixed picture with notable improvements in gross margin and indium phosphide demand, but was offset by revenue decline, increased net loss, and economic challenges in China. The strategic focus on high-growth markets like data centers and pending IPO for Tongmei could provide future growth opportunities.

Company Guidance

During AXT's Third Quarter 2024 Earnings Call, several key metrics and guidance were discussed. The company reported Q3 revenue of $23.6 million, a decrease from $27.9 million in Q2 2024 but an increase from $17.4 million in Q3 2023. The revenue breakdown included $6.8 million from indium phosphide and $6.6 million from gallium arsenide. Non-GAAP gross margin dropped to 24.3% from 27.6% in Q2 2024. The company anticipates Q4 revenue to be between $23.0 million and $25.0 million, with non-GAAP net loss expected in the range of $0.03 to $0.05 per share. AXT is optimistic about growth prospects in indium phosphide driven by data center applications and expects continued strategic gains in 2025. Additionally, the company is maintaining its application for its subsidiary Tongmei's IPO on the STAR Market in Shanghai, encouraged by recent economic stimuli in China.

Solid Indium Phosphide Demand

Indium phosphide revenue reached $6.8 million, driven by strong demand for data center applications, including AI and passive optical networks. The company anticipates continued growth in this segment, with new opportunities in high-speed VCSELs and silicon photonics devices.

Improved Gross Margin

Non-GAAP gross margin improved to 24.3% in Q3 2024 from 11.3% in Q3 2023, indicating better cost management and operational efficiency.

Decreased Operating Loss

The non-GAAP operating loss decreased to $2.6 million in Q3 2024 from $5.8 million in Q3 2023, showing an improvement in the company's financial management.

IPO Progress for Tongmei

The company remains in the in-process group for listing its subsidiary, Tongmei, on the STAR Market in Shanghai, showing potential for future capital growth.

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AXT (AXTI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

AXTI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 19, 2025	2024 (Q4)	-0.04 / -	-0.07	―	―	―
Oct 31, 2024	2024 (Q3)	-0.06 / -0.05	-0.12	58.33% (+0.07)	―
Aug 01, 2024	2024 (Q2)	-0.05 / -0.02	-0.1	80.00% (+0.08)	―
May 02, 2024	2024 (Q1)	-0.08 / -0.03	-0.06	50.00% (+0.03)	―
Feb 22, 2024	2023 (Q4)	-0.13 / -0.07	0.05	-240.00% (-0.12)	―
Nov 02, 2023	2023 (Q3)	-0.11 / -0.12	0.13	-192.31% (-0.25)	―
Aug 03, 2023	2023 (Q2)	-0.10 / -0.10	0.13	-176.92% (-0.23)	―
Apr 27, 2023	2023 (Q1)	-0.10 / -0.06	0.07	-185.71% (-0.13)	―
Feb 16, 2023	2022 (Q4)	0.02 / 0.05	0.07	-28.57% (-0.02)	―
Oct 27, 2022	2022 (Q3)	0.09 / 0.13	0.09	44.44% (+0.04)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AXTI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	$2.58	$2.11	-18.22%
Aug 01, 2024	$3.29	$2.68	-18.54%
May 02, 2024	$3.03	$3.66	+20.79%
Feb 22, 2024	$2.28	$3.86	+69.30%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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