Aerospace and defense company AXON (NASDAQ:AXON) will be reporting results tomorrow after market hours. Here’s what to expect.
Axon beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $544.3 million, up 31.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA 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 31.7% year on year to $566.7 million, improving from the 28% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Axon has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Axon’s peers in the aerospace and defense segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Byrna delivered year-on-year revenue growth of 78.9%, meeting analysts’ expectations, and Mercury Systems reported revenues up 13%, topping estimates by 23.9%. Byrna traded up 24.6% following the results while Mercury Systems was also up 18.3%.
Read our full analysis of Byrna’s results here and Mercury Systems’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the aerospace and defense stocks have shown solid performance, the group has generally underperformed, with share prices down 5.8% on average over the last month. Axon is down 14.6% during the same time and is heading into earnings with an average analyst price target of $636.63 (compared to the current share price of $517).
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