Axon Enterprise (AAXN) Q2 Earnings Top, Revenues Improve Y/Y

Axon Enterprise, Inc.’s (AAXN Free Report) second-quarter 2018 adjusted earnings came in at 18 cents per share surpassing the Zacks Consensus Estimate of 9 cents by 100%. The bottom line also improved 100% on a year-over-year basis.

Excluding one-time items, the company recorded GAAP earnings of 15 cents compared with 4 cents in the year-ago quarter. The upside was driven by higher sales and operating income.

Total Revenues

The company’s revenues totaled $99.2 million, which comfortably outpaced the Zacks Consensus Estimate of $96 million by 3.6% in the quarter under review. The reported figure also improved 24.6% year over year, buoyed by higher sales at both the TASER Weapon and the Software and sensors segments.

Revenues from the TASER Weapons segment were up 14.4% year over year to $60.6 million. Also, the Software and Sensors segment’s revenues surged 45% to $38.6 million.

Segment bookings decreased 8.9% to $88.9 million as of Jun 30, 2018 from $97.5 million in the preceding quarter. Nevertheless, bookings increased 8.4% on a year-over-year basis.

Quarter Highlights

Axon Enterprise’s gross margin expanded 630 basis points year over year to 63.6% from 57.3%. The uptick was backed by a strong product mix in weapons and continued Axon Cloud growth.

Total operating expenses increased 29.2% to $57.8 million. The improvement can be attributed to higher sales, general and administrative expenses (up 23.6%), and research and development expenses (up 42.4%).


Axon Enterprise had cash and cash equivalents of $307.5 million as of Jun 30, 2018 compared with $75.1 million as of Dec 31, 2017.

Net cash outflow from operating activities was $1.9 million as of Jun 30, 2018 compared with cash outflow of $5.8 million in the year-ago quarter. Free cash outflow summed $10.7 million compared with cash outflow of $9.3 million in second-quarter 2017.

Zacks Rank

Axon Enterprise currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

Johnson Controls International plc (JCI Free Report) reported adjusted earnings per share of 81 cents in third-quarter fiscal 2018, which outpaced the Zacks Consensus Estimate of 80 cents. Also, revenues came in at $8.1 billion surpassing the Zacks Consensus Estimate of $7.96 billion.

Allegion plc’s (ALLE Free Report) adjusted earnings in the second quarter were $1.25 per share, which exceeded the Zacks Consensus Estimate of $1.20. The company generated revenues of $704.7 million, reflecting growth of 12.4% from the year-ago tally.

Fortune Brands Home & Security, Inc.’s (FBHS Free Report) earnings before charges/gains in the second quarter were $1.00 per share, which missed the Zacks Consensus Estimate of $1.03. Its net sales totaled $1,429 million, up 4.7% from the year-ago number.

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