Axon Enterprise (NASDAQ:AXON) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Axon Enterprise (NASDAQ:AXON) released its quarterly earnings data on Wednesday. The biotechnology company reported $1.88 EPS for the quarter, topping the consensus estimate of $1.84 by $0.04, FiscalAI reports. Axon Enterprise had a return on equity of 3.78% and a net margin of 6.90%.The company had revenue of $904.39 million during the quarter, compared to the consensus estimate of $876.42 million.

Here are the key takeaways from Axon Enterprise’s conference call:

• Q2 revenue rose 35% year over year to $904 million, marking the 10th consecutive quarter of growth above 30%. Software and services grew 36%, while connected devices increased 35%.
• Axon raised its full-year revenue growth guidance to 32%-34% from 30%-32%, citing strong first-half results and demand. Management expects normalized bookings growth to finish in the 30% range.
• Counter-drone business Dedrone surpassed $100 million in quarterly revenue, with demand expanding beyond the World Cup into federal, international, enterprise, data-center and corporate-security applications. International bookings tripled year over year, and enterprise bookings also increased roughly threefold.
• Software expansion is accelerating, with offerings outside Axon Evidence growing about 70% and the AI Era Plan nearly 700%. Annual recurring revenue grew 39% to $1.6 billion, while net revenue retention reached a record 126%.
• Although full-year adjusted EBITDA margin guidance remains approximately 25.5%, Q3 margins are expected to face pressure from higher memory and component costs and will receive no tariff-refund benefit. Free cash flow was roughly breakeven in Q2 as Axon continued heavy inventory investment, with stronger generation expected in Q4.

Axon Enterprise Stock Performance

NASDAQ AXON traded up $2.29 during trading hours on Wednesday, hitting $609.49. 1,084,758 shares of the company’s stock traded hands, compared to its average volume of 1,067,942. Axon Enterprise has a 52 week low of $339.01 and a 52 week high of $885.00. The firm has a market capitalization of $49.12 billion, a P/E ratio of 244.78, a P/E/G ratio of 11.75 and a beta of 1.39. The company has a current ratio of 2.27, a quick ratio of 1.93 and a debt-to-equity ratio of 0.49. The business’s fifty day moving average price is $505.32 and its two-hundred day moving average price is $474.90.

Analyst Ratings Changes

AXON has been the topic of a number of recent analyst reports. Barclays dropped their price target on shares of Axon Enterprise from $682.00 to $523.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Morgan Stanley set a $600.00 price objective on shares of Axon Enterprise in a research report on Thursday, May 7th. UBS Group dropped their target price on shares of Axon Enterprise from $570.00 to $440.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. Weiss Ratings raised shares of Axon Enterprise from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 8th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Axon Enterprise in a research report on Wednesday, July 22nd. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $710.64.

Insiders Place Their Bets

In other Axon Enterprise news, CRO Cameron Brooks sold 1,242 shares of the company’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $500.00, for a total value of $621,000.00. Following the completion of the sale, the executive owned 49,710 shares in the company, valued at $24,855,000. This represents a 2.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joshua Isner sold 13,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $488.45, for a total value of $6,349,850.00. Following the transaction, the president owned 169,125 shares of the company’s stock, valued at approximately $82,609,106.25. This trade represents a 7.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 58,989 shares of company stock valued at $30,527,983. 4.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Axon Enterprise

Several large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC purchased a new position in shares of Axon Enterprise in the fourth quarter valued at about $480,000. NewEdge Advisors LLC lifted its stake in Axon Enterprise by 41.1% in the 1st quarter. NewEdge Advisors LLC now owns 2,294 shares of the biotechnology company’s stock worth $1,207,000 after purchasing an additional 668 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of Axon Enterprise by 8.4% during the 1st quarter. Empowered Funds LLC now owns 2,028 shares of the biotechnology company’s stock valued at $1,067,000 after purchasing an additional 157 shares during the last quarter. Woodline Partners LP increased its holdings in shares of Axon Enterprise by 40.6% in the first quarter. Woodline Partners LP now owns 6,932 shares of the biotechnology company’s stock worth $3,646,000 after purchasing an additional 2,003 shares during the last quarter. Finally, Sivia Capital Partners LLC bought a new stake in shares of Axon Enterprise in the second quarter worth about $284,000. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company’s hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.