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AXT pauses as traders de-risk ahead of Lumentum earnings
AXT, which supplies indium phosphide substrates for optical components, is down near $74 midday Tuesday after a prior session swing of nearly 17%.
Shares of AXT were drifting lower midday Tuesday as traders reportedly de-risk ahead of Lumentum’s closely watched results later in the day, according to Yahoo Finance. The stock was changing hands near $74 and was roughly flat on the session, after a more volatile prior week.
AXT has surged 351% year to date, but the move so far this week appears more tied to sentiment ahead of Lumentum than to reaction to AXT’s own performance. The stock also rebounded from a July 29 close of $36.97 after earlier weakness.
AXT supplies indium phosphide (InP) substrates that feed into silicon photonics and high-speed transceiver equipment, a supply chain that supports Lumentum and Coherent. That makes Lumentum’s commentary on areas including 800G modules and co-packaged optics a key potential input for sentiment around AXT’s InP business.
Yahoo Finance also noted that Lumentum has beaten EPS estimates four straight quarters, with past beats linked to an average 7% day-of gain and a 15% one-week gain. For its upcoming quarter, Lumentum guided fiscal Q4 revenue of $960 million to $1.01 billion, non-GAAP EPS of $2.85 to $3.05, and an operating margin of 35.0% to 36.0%, alongside an OCS backlog above $400 million and an incremental multi-hundred-million-dollar co-packaged optics order.