Axon's Q4 Earnings Top Estimates on Solid Software & Sensors Sales

Axon Enterprise, Inc. AXON reported fourth-quarter 2024 adjusted earnings of $2.08 per share, which surpassed the Zacks Consensus Estimate of $1.53. The bottom line surged 84.1% year over year despite a significant rise in the cost of sales.Total revenues of $575.1 million surpassed the consensus estimate of $566.1 million and increased 33.6% year over year. The top line benefited from strong demand for TASER, Axon Body 4 and Axon Fleet 3 products. Growth in TASER and Sensors revenues, with increased adoption of premium software offerings, augmented the top-line results.For 2024, Axon reported revenues of $2.08 billion, reflecting an increase of 33.4% year over year. The company’s adjusted earnings were $5.94 per share, higher than $4.16 in 2023.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.AXON’s Q4 Business Segment PerformanceSoftware & Sensors: Within this segment, Cloud and Services revenues rose 40.6% to $230.3 million. The uptick was driven by new customer adoption of Axon Evidence and increased adoption of premium software offerings among existing customers. Cloud & Services’ adjusted gross margin increased year over year to 77.2% from 75.7%, driven by higher software mix revenues relative to professional services.Within the segment, Sensors & Other revenues climbed 17.5% to $123.6 million, driven by increased demand for Axon Body cameras. The adjusted gross margin declined to 36.2% from 47.5% in the year-ago period due to product mix and inventory reserve charges associated with legacy products.TASER: The segment’s revenues jumped 37.1% year over year to $221.2 million, driven by growth in demand for TASER 10 and associated cartridges and services. The adjusted gross margin increased year over year to 63.7% from 57.6%, driven by investments in automation and cost reduction initiatives.Axon Enterprise, Inc Stock Price, Consensus and EPS Surprise Axon Enterprise, Inc price-consensus-eps-surprise-chart | Axon Enterprise, Inc QuoteAXON’s Margin ProfileAxon’s cost of sales increased 37.8% year over year to $229.3 million. Selling, general and administrative expenses increased 65.3% year over year to $227 million.Total operating expenses climbed 63.5% year over year to $361.6 million. The adjusted gross margin increased to 63.2% from 62% in the year-ago period.AXON’s Balance Sheet & Cash FlowAt the end of fourth-quarter 2024, Axon had cash and cash equivalents of $454.8 million compared with $598.5 million at December 2023-end. Long-term lease liabilities totaled $41.4 million compared with $33.6 million at 2023-end.In 2024, the company generated net cash of $408.3 million from operating activities, significantly higher than $189.3 million in the previous year.Adjusted free cash flow was $344.3 million in 2024 compared with $148.1 million in the prior year.AXON’s Outlook for 2025For 2025, Axon expects revenues to be in the band of $2.55-$2.65 billion. The metric indicates approximately 25% year-over-year growth at the midpoint. Adjusted EBITDA is expected to be in the range of $640-$670 million, implying an adjusted EBITDA margin of about 25%.The company expects capital expenditures to be between $140 million and $180 million. This includes investments in long-term research & development projects, continued capacity expansion, global facility build-outs and new product development. It anticipates stock-based compensation expenses to be in the range of $580-$630 million.AXON’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other CompaniesAAR Corp. AIR delivered second-quarter fiscal 2025 (ended November 2024) adjusted earnings of 90 cents per share, which beat the Zacks Consensus Estimate of 83 cents. The Zacks Rank #1 company’s bottom line increased 11% year over year, driven by higher volume and productivity gains.Total revenues grew 25.7% year over year to $686.1 million and surpassed the consensus estimate of $652.6 million.Woodward, Inc. WWD recorded adjusted earnings of $1.35 per share in first-quarter fiscal 2025 (ended December 2024), 7% lower than the prior-year quarter. However, the figure beat the consensus estimate of $1.14.The Zacks Rank #2 (Buy) company reported revenues of $773 million, which decreased 2% from the year-ago quarter. The top line missed the consensus estimate of $779 million.Leonardo DRS, Inc.’s DRS fourth-quarter 2024 adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line increased 22.5% on a year-over-year basis.The Zacks Rank #2 company’s net sales of $981 million beat the consensus estimate of $943 million. The top line increased 5.9% year over year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AAR Corp. (AIR): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis Report Axon Enterprise, Inc (AXON): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks