AXT (AXTI) Reports Q2 Loss, Beats Revenue Estimates

Company Performance - AXT reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, and compared to a loss of $0.02 per share a year ago, indicating a significant decline [1] - The company posted revenues of $17.97 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.53%, but down from $27.92 million year-over-year [2] - AXT has surpassed consensus revenue estimates three times over the last four quarters, but has only exceeded consensus EPS estimates once in the same period [2] Stock Outlook - AXT shares have underperformed the market, losing about 2.3% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the coming quarter is -$0.09 on revenues of $23.78 million, and -$0.45 on revenues of $91.11 million for the current fiscal year [7] - The estimate revisions trend for AXT was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Electronics - Semiconductors industry, to which AXT belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]