Yahoo Finance AXT, Inc. Just Recorded A 100% EPS Beat: Here's What Analysts Are Forecasting Next
As you might know, AXT, Inc. (NASDAQ:AXTI) just kicked off its latest quarterly results with some very strong numbers. The company beat both earnings and revenue forecasts, with revenue of US$25m, some 5.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.02, 100% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AXT after the latest results.
Check out our latest analysis for AXT
Taking into account the latest results, the current consensus from AXT's four analysts is for revenues of US$107.6m in 2021, which would reflect a huge 24% increase on its sales over the past 12 months. AXT is also expected to turn profitable, with statutory earnings of US$0.20 per share. Before this earnings report, the analysts had been forecasting revenues of US$104.8m and earnings per share (EPS) of US$0.18 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.2% to US$8.53per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on AXT, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$6.60 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting AXT's growth to accelerate, with the forecast 24% growth ranking favourably alongside historical growth of 2.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.6% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that AXT is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AXT following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for AXT going out to 2021, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with AXT .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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