Axon Earnings: What To Look For From AXON

Aerospace and defense company AXON (NASDAQ:AXON) will be reporting results tomorrow after market close. Here’s what you need to know.

Axon beat analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $504.1 million, up 34.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA and earnings estimates.

Is Axon a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Axon’s revenue to grow 27% year on year to $525.4 million, slowing from the 32.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Axon has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.7% on average.

Looking at Axon’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Byrna delivered year-on-year revenue growth of 194%, meeting analysts’ expectations, and Mercury Systems reported revenues up 13%, topping estimates by 12.5%. Byrna traded down 18.4% following the results.

Read our full analysis of Byrna’s results here and Mercury Systems’s results here.

There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 2.7% on average over the last month. Axon is up 3.5% during the same time and is heading into earnings with an average analyst price target of $442.85 (compared to the current share price of $441.99).

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