News

AXT AXTI is scheduled to report first-quarter 2024 results on May 2.

AXT initially expected net sales to be $20-$22 million in the first quarter of 2024. The company later revised its guidance on Apr 8, 2024, and announced that it now expects revenues to increase by $22.4-$22.7 million, exceeding the company’s prior guidance.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $21 million, indicating an improvement of 8.19% from the year-ago period’s reported figure.

Non-GAAP earnings are anticipated to be 6-8 cents per share. The consensus mark for loss has remained unchanged at 8 cents in the past 30 days.

AXT Inc Price and EPS Surprise

AXT beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 25.96%.

Let’s see how things have shaped up for AXT prior to this announcement.

Key Factors to Note

AXT’s first quarter 2024 results are expected to have benefited from increasing demand in indium phosphide and gallium arsenide substrates driven by increased demand in various applications, including artificial intelligence (AI), data centers, wireless switches, LEDs and high-power lasers.

Expanding demand for AI-related applications, particularly in the realm of data transfer and processing, is anticipated to have acted as a tailwind. As AI drives the need for rapid data transfer with increased bandwidth, AXT's indium phosphide substrates are well-positioned to meet this demand owing to their optimal characteristics for high-speed data transfer.

AXTI is likely to have benefited from new demand in the gallium arsenide market, particularly in Heterojunction Bipolar Transistor (HBT) applications, indicating diversification in its customer base during the quarter under review.

Strengthening international footprint is expected to have remained a key factor in driving AXTI’s performance in the to-be-reported quarter. The company’s improving demand in China across various applications, including LEDs, wireless switches and high-power lasers, is likely to have driven growth in the first quarter.

Strong momentum across its developed eight-inch gallium arsenide wafers for LED applications like microLED is expected to have bolstered BBAI’s performance in the first quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

AXT has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have gained 12% year to date. ANET is set to report its first-quarter 2024 results on May 7.

NVIDIA NVDA has an Earnings ESP of +2.50% and a Zacks Rank #2.

NVIDIA’s shares have gained 203.5% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.

Docebo DCBO has an Earnings ESP of +8% and a Zacks Rank #3.

Docebo’s shares have declined 3.9% year to date. DCBO is set to report its first-quarter 2024 results on May 9.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.