AXT Inc's stock surged 6.22% in pre-market trading, following the release of the company's fourth-quarter financial results that exceeded earnings expectations.
The semiconductor materials manufacturer reported an adjusted loss of $0.05 per share for the quarter ended December 31, which beat the consensus analyst estimate of a $0.06 loss. While revenue of $23.04 million fell short of estimates, the improved bottom-line performance and positive business outlook are driving investor optimism.
Additionally, AXT Inc announced it remains on track to double its indium phosphide manufacturing capacity in 2026, signaling strong growth prospects for the coming year. The company's current average analyst rating is "buy" with four "strong buy" or "buy" recommendations, reflecting positive market sentiment toward the stock.