Overview

* AXT Q2 revenue declines to $18 mln, missing analyst expectations

* Adjusted net income for Q2 shows a loss of $6.4 mln, missing estimates

* Co sees growth in AI-related demand for indium phosphide substrates

Result Drivers

* EXPORT PERMIT DELAYS - Longer processing times for gallium arsenide export permits affected revenue growth, per CEO Morris Young

* CHINA DEMAND SLUGGISHNESS - Sluggish demand environment in China impacted substrate and raw material business

* AI DEMAND - Healthy growth in AI-related demand for indium phosphide substrates, with initial exports outside China

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $18 mln $19.80

Revenue mln (5

Analysts

)

Q2 EPS $0.15

Q2 Miss -$6.40 -$5.87

Adjusted mln mln (5

Net Analysts

Income )

Q2 8.2%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductors peer group is "buy"

* Wall Street's median 12-month price target for AXT Inc ( AXTI ) is $4.25, about 50.1% above its July 30 closing price of $2.12

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)