The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AXT met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
AXT logged revenue of $21.2 million. The six analysts polled by S&P Capital IQ expected a top line of $21.3 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $26.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The five earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS of $0.08 for Q4 were 47% lower than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.0%, 280 basis points worse than the prior-year quarter. Operating margin was 15.7%, 520 basis points worse than the prior-year quarter. Net margin was 12.1%, 610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $22.7 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $105.2 million. The average EPS estimate is $0.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 370 members out of 386 rating the stock outperform, and 16 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give AXT a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AXT is buy, with an average price target of $7.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.