Back to top

Image: Bigstock

Axon Enterprise (AAXN) Q4 Earnings Lag & Sales Top Estimates

Read MoreHide Full Article

Axon Enterprise, Inc. delivered adjusted earnings per share of 8 cents in the fourth quarter, missing the Zacks Consensus Estimate of 11 cents. On a year-over-year basis, earnings declined 53%.

Including one-time items, Axon Enterprise reported earnings per share of 3 cents per share in the quarter against a loss of 4 cents a year ago.
 
Operational Update
 
Sales in the quarter increased 21.3% year over year to $114.8 million, beating the Zacks Consensus Estimate of $104.7 million. International revenues were up 52% year over year to $24 million. Cost of goods sold increased 56.3% to $49.4 million from $31.6 million in the prior-year quarter. Gross profit rose 3.7% year over year to $65.3 million. Gross margin expanded 360 basis points to 56.9% year over year. Adjusted EBITDA in the quarter was down 24.7% to $10.9 million.

Selling, general and administrative expenses increased 6.3% year over year to $42 million. Axon Enterprise reported an operating income of $2 million compared with $8 million in the year-ago quarter, showing a decline of 74%.

Segment Performance
 
TASER segment reported revenues of $65.3 million in the fourth quarter, up 1.4% from $64.4 million in the prior-year quarter. The segment’s gross profit declined 7.2% to $42.4 million from $45.7 million in the prior-year quarter.
 
Revenues at the Software and Sensors segment jumped 63.6% to $49.5 million from the year-ago quarter. Gross profit for the segment increased 32.3% to $23 million from $17.3 million in the year-ago quarter. Software and Sensors bookings were $110 million, reflecting an increase of 54% year over year.
 
Financial Position
 
Axon Enterprise had cash and cash equivalents of $349 million at the end of 2018, compared with $75 million at 2017-end. Net cash provided by operating activities was $63.9 million in 2018 compared with $18.5 million in 2017.

2018 Results

Axon Enterprise reported adjusted earnings per share of 74 cents in 2018, up 68% from 44 cents in the prior year. Earnings missed the Zacks Consensus Estimate of 79 cents. Including one-time items, the company reported earnings per share of 50 cents compared with the prior year’s 10 cents.

Sales increased 22% year over year to $420 million in 2018. The top line beat the Zacks Consensus Estimate of $410 million.
 
Guidance
 
Axon Enterprise expects revenues in the range of $480-$490 million in 2019 driven by new cloud-connected products, which include TASER 7 and Axon Fleet 2. For 2019, adjusted EBITDA is estimated between $80 million and $85 million. Revenues for first-quarter 2019 are expected to increase 8-9% year over year.

Zacks Rank & Other Stocks to Consider

Axon Enterprise currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Industrial Products sector are Mueller Industries, Inc. (MLI - Free Report) , Alarm.com Holdings, Inc. (ALRM - Free Report) and Albany International Corp. (AIN - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mueller Industries has an expected earnings growth rate of 2.2% for 2019.
 
Alarm.com has an expected earnings growth rate of 7.8% for 2019.
 
Albany International has an expected earnings growth rate of 44.7% for 2019.
 
Is Your Investment Advisor Fumbling Your Financial Future?
 
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
 
Click to get it free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mueller Industries, Inc. (MLI) - free report >>

Albany International Corporation (AIN) - free report >>

Alarm.com Holdings, Inc. (ALRM) - free report >>

Published in