Wedbush Securities anticipates AXT Inc. (AXTI) could surpass Wall Street estimates. AXT reports its third-quarter results on October 29. The firm notes AXT's revenue guidance is approximately $66 million. This figure represents a "floor." It only includes revenue from products with existing export permits.
Wedbush suggests production capacity and pricing will determine the magnitude of a potential beat. The firm cited several positive indicators. These include strong sales from a major customer. Indium phosphide sector peers show healthy revenue growth. Material pricing is rising. Customers report continued supply shortages. Wedbush maintains an "Outperform" rating on the stock.