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AXON Gears Up to Report Q3 Earnings: What's in the Offing?

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Axon Enterprise, Inc. (AXON - Free Report) is scheduled to release third-quarter 2024 results on Nov. 7, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company has a stellar earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 24.1%.

Let’s see how things have shaped up for Axon this earnings season.

Factors to Note

Strong demand for TASER devices and higher cartridge revenues are expected to have boosted the performance of Axon’s TASER segment . Also, the segmental performance is likely to have benefited from the stable demand for virtual reality training services. The Zacks Consensus Estimate for the TASER segment’s revenues is pegged at $199 million, which indicates an increase of 22.1% from the year-ago number.

The Software & Sensors segment’s results are expected to reflect higher revenues, supported by the addition of new users and associated devices to the AXON network. Strong momentum in Axon Evidence and cloud services, driven by an increase in the aggregate number of users, average revenue per user and software add-ons, is also likely to have driven the segmental revenues. 

Strong customer response for its next-generation body-worn camera, Axon Body 4, is also expected to have driven the segment’s performance. The Zacks Consensus Estimate for the Software & Sensors segment’s net sales is pegged at $328 million, indicating a 30.7% jump from the year-ago number.

The company remains focused on strategic collaborations with other companies to expand its product offerings and customer base. This is likely to reflect in its third-quarter results. For instance, in June 2024, Axon entered into a partnership with Skydio (a leading U.S. drone manufacturer) to introduce a comprehensive line of drones in public safety that includes a scalable Drone as First Responder (DFR) solution. The consensus estimate for the company’s revenues is pegged at $526.4 million, indicating an increase of 27.3% from the year-ago quarter’s figure.

However, the escalating cost of sales, due to business integration activities, higher wages and stock-based compensation expenses, is likely to have weighed on AXON’s bottom line. The consensus estimate for the company’s adjusted earnings is pinned at $1.21 per share, indicating a 18.6% increase from the year-ago quarter’s number.

The company’s international presence exposes it to the risk of adverse currency fluctuations, which are likely to have hurt its performance.

Axon Enterprise, Inc Price and EPS Surprise

Axon Enterprise, Inc Price and EPS Surprise

Axon Enterprise, Inc price-eps-surprise | Axon Enterprise, Inc Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for AXON this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Axon Enterprise has an Earnings ESP of 0.00% as the both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $1.21. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: AXON presently carries a Zacks Rank of 3.

Performance of Another Company

Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.

Stocks to Consider

Here are two companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Tenaris S.A. (TS - Free Report) has an Earnings ESP of +10.22% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release third-quarter 2024 results on Nov. 6. Tenaris’ earnings surpassed the Zacks Consensus Estimate in two of the preceding four quarters and missed the mark in the other two, the average surprise being 11.6%.

Berry Global Group has an Earnings ESP of +0.25% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter fiscal 2024 results on Nov. 21.

Berry Global’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed once on the remaining one occasion, the average surprise being 2.9%.


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