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AXT (AXTI) to Announce Q3 Earnings: What's in the Cards?

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AXT Inc (AXTI - Free Report) is scheduled to report third-quarter 2021 results on Oct 27.

For the third quarter,the Zacks Consensus Estimate for revenues is pegged at $35.1 million, indicating an improvement of 37.8% from the year-ago period’s reported figure.

The consensus estimate for earnings stands at 11 cents per share, suggesting a jump from 2 cents reported in the year-ago reported figure.

Key Factors to Note

Increasing demand in indium phosphide and gallium arsenide substrates for LED applications is likely to have continued aiding the company’s third-quarter performance.

Its growing raw material business is anticipated to have benefited the top line in the quarter under review.

AXT Inc Price and EPS Surprise

AXT Inc Price and EPS Surprise

AXT Inc price-eps-surprise | AXT Inc Quote

Concerted initiatives to support the current and the emerging customer requirements across different applications like 5G telecommunications and its related technologies, data center connectivity plus LED-based sensing and display might get reflected in the upcoming quarterly results.

Increasing adoption of silicon photonics in the data centers is likely to have remained a tailwind during the third quarter.

Rising investments in the manufacturing and business processes, in-house expertise and product development are expected to have supported the to-be-reported quarterly performance.

Higher demand in broad-based IoT application is anticipated to have contributed to the wireless revenues in the quarter under discussion.

Further, AXT developed eight-inch gallium arsenide wafers for LED applications, such as microLED and lidars. This is expected to have remained a key factor in driving the company’s performance in the third quarter.

However, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results. Also, increasing expenses related to research and development are likely to have affected the quarterly performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for AXT this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.

Trimble (TRMB - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank #2, at present.

Lyft (LYFT - Free Report) has an Earnings ESP of +11.76% and a Zacks Rank of 2, at present.

PerkinElmer (PKI - Free Report) has an Earnings ESP of +5.20% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In-Depth Zacks Research for the Tickers Above

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Trimble Inc. (TRMB) - free report >>

PerkinElmer, Inc. (PKI) - free report >>

AXT Inc (AXTI) - free report >>

Lyft, Inc. (LYFT) - free report >>