/Axon%20Enterprise%20Inc%20logo%20with%20buy%20and%20sell-by%20NPS_87%20via%20Shutterstock.jpg)
Arizona-based Axon Enterprise, Inc. (AXON) manufactures and sells conducted electrical weapons for various markets, including law enforcement and personal defense. Valued at $23.9 billion by market cap, the company’s operations are divided into two segments: TASER Weapons and Axon. The company is set to announce its fiscal 2024 Q2 earnings after the market closes on Tuesday, Aug. 6.
Ahead of the event, analysts expect Axon Enterprise to report a profit of $0.55 per share, down 31.3% from $0.80 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one occasion.
Looking ahead, analysts expect Axon Enterprise to report an EPS of $2.35 in fiscal 2024, down 17.3% from $2.84 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 47.3% year over year to $3.46.
AXON’s stock has rallied 77.6% over the past 52 weeks, significantly outperforming the broader S&P 500 Index's ($SPX) 22.5% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 14.9% returns over the same time frame.
Compared to the broader market, AXON’s robust price performance can be attributed to strong demand for its software products and cutting-edge launches. Moreover, the stock edged up 2.9% after it announced its Q1 earnings report on May 6. The company exceeded expectations and raised its full-year revenue outlook to $1.94 billion to $1.99 billion, up from prior guidance of $1.88 billion to $1.94 billion.
Additionally, the company announced its intention to acquire drone defense firm Dedrone. This acquisition, expected to close in the second half of 2024, will likely expand Axon's addressable market by $14 billion.
The consensus view on Axon Enterprise stock is “Strong Buy” overall. Out of 15 analysts covering the stock, 12 suggest a “Strong Buy,” two advise a “Moderate Buy,” and the remaining analyst gives a “Hold.”
Furthermore, the average analyst price target for Axon Enterprise is $369.62, indicating a potential upside of 15.7% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
