AXT Inc (AXTI) Stock: Seeing Massive Gains After Earnings

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AXT Inc (NASDAQ: AXTI)

AXT is having an incredible day in the market today, and for good reason. Yesterday, after the closing bell, the company provided its earnings report for the first quarter, generating overwhelmingly positive results. Today, we’ll talk about the results from the quarter, how investors reacted to the news, and what we can expect to see from AXTI moving forward. So, let’s get right to it…

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AXTI Reports Q1 Earnings

As mentioned above, AXT is having an incredible day in the market today after reporting its earnings yesterday after the market close. Here’s what we saw from the earnings report:

  • Revenue – When it comes to revenue, AXTI definitely didn’t disappoint. During the quarter, the company generated revenue in the amount of $18.7 million. This represents relatively strong growth from the revenue of $18.1 million seen in the fourth quarter.
  • Earnings – In terms of earnings per share, investors were incredibly happy with AXTI. During the quarter, the company generated a net profit of $42,000. This equates to earnings at $0.00 per share, but the company is now profitable. This was a big leap from the previous quarter, when the company reported a loss in the amount of $1.2 million or $0.04 per share.

As you can see from the information above, the earnings report was overwhelmingly positive. In a statement, Morris Young, CEO at AXT, had the following to offer:

Q1 was a strong quarter for AXT in which we exceeded our revenue and profitability guidance, and posted a strong increase in both our gross and operating margins from the prior quarter… Our indium phosphide revenue was our strongest in recent years. In addition, our manufacturing team continues to work on efficiency and yield improvement, and these efforts along with our product mix helped improve our gross margin in the quarter.”

How The Market Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when negative news is released, we can expect to see declines. In this particular case, the news that was released was overwhelmingly positive. At this point, AXTI has made it to profitability, and investors are incredibly excited about what that means for the company’s future. As a result, we’re seeing strong gains in the value of the stock today. Currently (10:17), the stock is trading at $3.31 per share after a gain of $0.66 per share or 24.91% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion with regard to what we can expect to see from AXTI. The reality is that it’s taken a long time for the company to get to this point. However, at this point, it is profitable, and that will open the door to big opportunities for investors!

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What Do You Think?

Where do you think AXTI is headed moving forward and why? Let us know your opinion in the comments below.

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