Axon Enterprise, Inc.’s second-quarter 2017 earnings came in at 4 cents per share, in line with the Zacks Consensus Estimate. However, this Scottsdale, AZ-based company’s earnings declined 42.9% year over year. The decrease was mainly due to lower gross profit and operating income.
Total Revenue
In the quarter, the company generated revenues of $79.6 million, beating the Zacks Consensus Estimate of $75 million by 6.8%. The reported figure also increased 35.5% year over year. The upside can be attributed to higher sales from both TASER Weapon as well as Software and sensors segments.
Revenues from the TASER Weapons segment rose 16.4% year over year to $53 million. Software and sensors segment revenues surged 101.4% to $26.6 million.
Segment bookings declined 17.1% to $81.9 million as of Jun 30, from $60.1 million in the preceding quarter. However, bookings increased 13.8% year over year in the quarter.
Highlights of the Quarter
The company’s gross margin contracted 620 basis points year over year to 57.3% from 63.5% a year ago.
Total operating expenses increased 44.1% year over year to $44.8 million. The uptick was primarily driven by higher sales, general and administrative expenses (up 30.5%) and research and development expenses (up 93.6%).
Financials
The company had cash and cash equivalents of $28 million as of Jun 30, compared with $40.7 million as of Dec 31, 2016.
Net cash used by operating activities was $5.8 million in the reported quarter compared with cash inflow of $3.2 million in the year-ago period. Free cash outflow was $9.3 million versus cash inflow of $2.5 million a year ago.
Zacks Rank
Axon Enterprise presently carries a Zacks Rank #4 (Sell).
Peer Releases
Allegion plc’s (ALLE - Free Report) second-quarter 2017 adjusted earnings came in at $1.11 per share, surpassing the Zacks Consensus Estimate of $1.00 by 11%. In fact, the same was up 12.1% from the prior-year quarter. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortune Brands Home & Security, Inc. currently carries a Zacks Rank #3 (Hold). Its earnings before charges/gains came in at 92 cents per share, surpassing the Zacks Consensus Estimate of 87 cents by 5.7%. Also, the bottom line grew 12.2% from the year-ago quarter’s tally of 82 cents.
Johnson Controls International plc (JCI - Free Report) posted adjusted earnings of 71 cents per share in third-quarter fiscal 2017 (ended Jun 30), which came in line with the Zacks Consensus Estimate. Moreover, earnings increased 16% from 61 cents recorded in third-quarter fiscal 2016. The company currently carries a Zacks Rank #4.
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Axon Enterprise, Inc.’s second-quarter 2017 earnings came in at 4 cents per share, in line with the Zacks Consensus Estimate. However, this Scottsdale, AZ-based company’s earnings declined 42.9% year over year. The decrease was mainly due to lower gross profit and operating income.
Total Revenue
In the quarter, the company generated revenues of $79.6 million, beating the Zacks Consensus Estimate of $75 million by 6.8%. The reported figure also increased 35.5% year over year. The upside can be attributed to higher sales from both TASER Weapon as well as Software and sensors segments.
Revenues from the TASER Weapons segment rose 16.4% year over year to $53 million. Software and sensors segment revenues surged 101.4% to $26.6 million.
Segment bookings declined 17.1% to $81.9 million as of Jun 30, from $60.1 million in the preceding quarter. However, bookings increased 13.8% year over year in the quarter.
Highlights of the Quarter
The company’s gross margin contracted 620 basis points year over year to 57.3% from 63.5% a year ago.
Total operating expenses increased 44.1% year over year to $44.8 million. The uptick was primarily driven by higher sales, general and administrative expenses (up 30.5%) and research and development expenses (up 93.6%).
Financials
The company had cash and cash equivalents of $28 million as of Jun 30, compared with $40.7 million as of Dec 31, 2016.
Net cash used by operating activities was $5.8 million in the reported quarter compared with cash inflow of $3.2 million in the year-ago period. Free cash outflow was $9.3 million versus cash inflow of $2.5 million a year ago.
Zacks Rank
Axon Enterprise presently carries a Zacks Rank #4 (Sell).
Peer Releases
Allegion plc’s (ALLE - Free Report) second-quarter 2017 adjusted earnings came in at $1.11 per share, surpassing the Zacks Consensus Estimate of $1.00 by 11%. In fact, the same was up 12.1% from the prior-year quarter. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortune Brands Home & Security, Inc. currently carries a Zacks Rank #3 (Hold). Its earnings before charges/gains came in at 92 cents per share, surpassing the Zacks Consensus Estimate of 87 cents by 5.7%. Also, the bottom line grew 12.2% from the year-ago quarter’s tally of 82 cents.
Johnson Controls International plc (JCI - Free Report) posted adjusted earnings of 71 cents per share in third-quarter fiscal 2017 (ended Jun 30), which came in line with the Zacks Consensus Estimate. Moreover, earnings increased 16% from 61 cents recorded in third-quarter fiscal 2016. The company currently carries a Zacks Rank #4.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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