AXT Tanks 21% After Q3 Revenue Outlook Cut

Shares of AXT, Inc. (AXTI) are slipping over 21% on Tuesday morning after the manufacturer of compound semiconductor substrates lowered its revenue outlook for the third quarter.

AXT is currently trading at $5.53, down $1.48 or 21.05%, on the Nasdaq. The stock opened its trading at $6.24 after closing its trading at $7.01. The stock has traded between $4.97 and $9.94 in the 52-week period.

AXT now expects third-quarter revenues of $34 million to $35 million, below the company's previously stated guidance of $39 million to $41 million. Analysts currently estimates revenues of $39.97 million for the quarter.

The revenue outlook was lowered due to weakening macroeconomic conditions, particularly in the demand environment in China.

"Though we continue to feel confident about our participation in a number of exciting technology trends and Tier-1 opportunities, our business is not immune to the effects throughout the supply chain of a deteriorating macroeconomic environment. We are disappointed by the impact to our near-term growth, but we remain confident in our strategy and business opportunity across our key markets," said Morris Young, chief executive officer.

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