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Axon's Q4 Earnings Top Estimates on Solid Software & Sensors Sales
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Axon Enterprise, Inc. (AXON - Free Report) 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 Performance
Software & 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’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 Flow
At 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 2025
For 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.
AAR Corp. (AIR - Free Report) 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 - Free Report) 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 - Free Report) 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.
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Axon's Q4 Earnings Top Estimates on Solid Software & Sensors Sales
Axon Enterprise, Inc. (AXON - Free Report) 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 Performance
Software & 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 Quote
AXON’s Margin Profile
Axon’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 Flow
At 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 2025
For 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 Rank
The 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 Companies
AAR Corp. (AIR - Free Report) 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 - Free Report) 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 - Free Report) 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.