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Axon Enterprise, Inc. (AXON), headquartered in Scottsdale, Arizona, is reshaping public safety with its cutting-edge hardware and software. Known for its iconic Tasers, the company has become synonymous with conducted energy devices. But Axon’s reach goes far beyond that.
With a market cap of $33.1 billion, Axon serves law enforcement, federal agencies, and commercial enterprises. Its seamless integration of hardware and software enables real-time operations and efficient reporting. Axon is set to release its fiscal 2024 Q3 earnings results on Tuesday, Nov. 5.
Ahead of the event, analysts expect Axon’s profit to be $0.47 per share, down 33.8% from $0.71 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in two of the last four quarters while missing on the other two occasions. Axon’s EPS of $0.44 for the last reported quarter missed the consensus estimates by 20%.
Analysts anticipate Axon to report an EPS of $1.79 in fiscal 2024, down 37% from $2.84 in fiscal year 2023. However, its fiscal 2025 EPS is projected to surge 83.2% annually to $3.28.
Over the past 52 weeks, AXON has rallied 99.5%, surpassing the broader S&P 500 Index's ($SPX) 35.9% gains and the Industrial Select Sector SPDR Fund’s (XLI) 38.4% returns during the same period.
Axon’s stellar stock performance can be credited to its momentum fueled by cutting-edge innovation and rising global demand. With customers in all 50 U.S. states and 90 countries, its Axon Cloud now hosts over 2 billion law enforcement evidence files, making it indispensable for public safety agencies worldwide.
As the market questions the payoff of hyperscalers’ AI investments, Axon delivers with its AI suite - offering license plate reading, audio-to-text transcription, and Draft One, a tool that cuts police report drafting time by over 50%.
Shares of Axon rallied 18.4% in the subsequent trading session after the company released its Q2 earnings on Aug. 6 after the bell. Axon’s net sales surged 34.6% year over year to $504.1 million - a growth driven by strong performance across product categories and customer verticals, underpinned by Axon’s market-leading innovation. Plus, with AI-enhanced product sales soaring 70% in Q2, Axon’s international runway promises even more remarkable gains.
The current consensus opinion on AXON is “Strong Buy” overall. Out of 15 analysts covering the stock, 12 suggest a “Strong Buy,” two recommend a “Moderate Buy,” and the remaining one advises a “Hold.”
Although the stock currently trades above the mean price target of $397.71, the Street-high target price of $495 represents a potential upside of 13% from AXON’s current price level.
On the date of publication, Sristi Jayaswal 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.
