Self defense company AXON (NASDAQ:AXON) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
Axon beat analysts’ revenue expectations last quarter, reporting revenues of $807.3 million, up 33.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ ARR estimates and an impressive beat of analysts’ EBITDA estimates.
Is Axon a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Axon’s revenue to grow 31% year on year, slowing from the 32.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Axon has a history of exceeding Wall Street’s expectations.
Looking at Axon’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Byrna’s revenues decreased 42.5% year on year, missing analysts’ expectations by 26.3%, and Huntington Ingalls reported revenues up 10.9%, topping estimates by 8.2%. Byrna traded down 34.9% following the results while Huntington Ingalls was up 16.4%.
Read our full analysis of Byrna’s results here and Huntington Ingalls’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Axon is down 7.1% during the same time and is heading into earnings with an average analyst price target of $660.88 (compared to the current share price of $578).
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