Axon Enterprise Prepares for Earnings Release Amidst Strong Stock Performance
Axon Enterprise, Inc. (AXON), based in Scottsdale, Arizona, is transforming public safety with innovative hardware and software. While the company’s famous Tasers play a significant role, Axon’s influence extends much further.
With a market cap of $33.1 billion, Axon caters to law enforcement agencies, federal branches, and commercial clients. Its integration of hardware and software supports real-time operations and effective reporting. Investors are eagerly awaiting the release of Axon’s fiscal 2024 Q3 earnings results on Tuesday, November 5.
Expectations Leading Up to Earnings Report
Analysts project Axon’s profit to be $0.47 per share, a decline of 33.8% from $0.71 per share in the same quarter last year. Though Axon has outperformed Wall Street’s EPS estimates in two of the last four quarters, it fell short in the other two. The last reported quarter showed an EPS of $0.44, missing the consensus forecast by 20%.
Looking ahead, analysts expect Axon to report an EPS of $1.79 in fiscal 2024, down 37% from the $2.84 recorded in fiscal year 2023. However, forecasts indicate that EPS will rebound in fiscal 2025, rising 83.2% to $3.28.
Stock Performance Surges Over the Past Year
In the past year, AXON has rallied 99.5%, outperforming the broader S&P 500 Index which saw gains of 35.9%, as well as the Industrial Select Sector SPDR Fund (XLI), which recorded 38.4% returns.
This impressive stock performance is largely due to Axon’s commitment to innovation and the growing demand for its products. The company services clients in all 50 U.S. states and 90 countries, with Axon Cloud now managing over 2 billion law enforcement evidence files, highlighting its importance for public safety agencies worldwide.
Innovative Solutions and Market Confidence
As concerns arise regarding the effectiveness of large tech firms’ AI investments, Axon stands out with its AI offerings. These include tools for license plate reading, audio-to-text transcription, and Draft One—software that reduces police report drafting time by more than 50%.
Following the release of its Q2 earnings on August 6, shares of Axon rose 18.4%. The company reported net sales of $504.1 million, marking a 34.6% year-over-year increase. This growth stems from strong product performance and an expanding customer base, with AI-enhanced product sales surging 70% in Q2, paving the way for remarkable international growth.
Analysts’ Outlook on Axon Stock
The overall consensus on AXON is “Strong Buy.” Of the 15 analysts covering the stock, 12 advise a “Strong Buy,” two suggest a “Moderate Buy,” and one maintains a “Hold” rating.
While the stock currently trades above the average price target of $397.71, the highest target price of $495 indicates a potential upside of 13% from AXON’s current price level.
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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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