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Axon Enterprise (AAXN) Meets Q2 Earnings, Beats Revenues


Axon Enterprise, Inc.’s AAXN second-quarter 2017 earnings came in at 4 cents per share, in line with the Zacks Consensus Estimate. However, this Scottsdale, AZ-based company’s earnings declined 42.9% year over year. The decrease was mainly due to lower gross profit and operating income.

Total Revenue

In the quarter, the company generated revenues of $79.6 million, beating the Zacks Consensus Estimate of $75 million by 6.8%. The reported figure also increased 35.5% year over year. The upside can be attributed to higher sales from both TASER Weapon as well as Software and sensors segments.

Revenues from the TASER Weapons segment rose 16.4% year over year to $53 million. Software and sensors segment revenues surged 101.4% to $26.6 million.

Segment bookings declined 17.1% to $81.9 million as of Jun 30, from $60.1 million in the preceding quarter. However, bookings increased 13.8% year over year in the quarter.

Highlights of the Quarter

The company’s gross margin contracted 620 basis points year over year to 57.3% from 63.5% a year ago.

Total operating expenses increased 44.1% year over year to $44.8 million. The uptick was primarily driven by higher sales, general and administrative expenses (up 30.5%) and research and development expenses (up 93.6%).

TASER International, Inc. Price, Consensus and EPS Surprise

TASER International, Inc. Price, Consensus and EPS Surprise | TASER International, Inc. Quote


The company had cash and cash equivalents of $28 million as of Jun 30, compared with $40.7 million as of Dec 31, 2016.

Net cash used by operating activities was $5.8 million in the reported quarter compared with cash inflow of $3.2 million in the year-ago period. Free cash outflow was $9.3 million versus cash inflow of $2.5 million a year ago.

Zacks Rank

Axon Enterprise presently carries a Zacks Rank #4 (Sell).

Peer Releases

Allegion plc’s ALLE second-quarter 2017 adjusted earnings came in at $1.11 per share, surpassing the Zacks Consensus Estimate of $1.00 by 11%. In fact, the same was up 12.1% from the prior-year quarter. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fortune Brands Home & Security, Inc. FBHS currently carries a Zacks Rank #3 (Hold). Its earnings before charges/gains came in at 92 cents per share, surpassing the Zacks Consensus Estimate of 87 cents by 5.7%. Also, the bottom line grew 12.2% from the year-ago quarter’s tally of 82 cents.

Johnson Controls International plc JCI posted adjusted earnings of 71 cents per share in third-quarter fiscal 2017 (ended Jun 30), which came in line with the Zacks Consensus Estimate. Moreover, earnings increased 16% from 61 cents recorded in third-quarter fiscal 2016. The company currently carries a Zacks Rank #4.

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