Back to top

Image: Bigstock

What's in the Cards for Axon (AXON) This Earnings Season?

Read MoreHide Full Article

Axon Enterprise (AXON - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 28, after market close.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 78.4%.

Let’s see how things have shaped up for Axon this earnings season.

Axon Enterprise, Inc Price and EPS Surprise

 

Axon Enterprise, Inc Price and EPS Surprise

Axon Enterprise, Inc price-eps-surprise | Axon Enterprise, Inc Quote

Factors to Note

Axon’s fourth-quarter performance is expected to have benefited from strength in the TASER segment due to strong demand for latest generation devices like TASER 7 and a solid backlog level.

Strong demand for Axon Cloud SaaS solutions, Axon Body 3 and Axon Fleet 3 systems are likely to have driven Axon’s Software and Sensors segment’s performance. The acquisition of Foundry 45, which has expanded the company’s presence in new markets globally, is expected to have boosted the company’s top line.

However, a decline in sales of Axon’s legacy TASER devices is likely to have weighed on the fourth-quarter performance. Reduced production capabilities due to supply-chain disruptions are likely to have affected the company's performance. Raw material cost inflation is expected to have dented the bottom line.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Axon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Axon has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Axon currently carries a Zacks Rank #3.

Highlights of Q3 Earnings

In third-quarter 2022, Axon reported adjusted earnings of 60 cents per share, which beat the Zacks Consensus Estimate of 46 cents. Revenues of $311.75 million surpassed the Zacks Consensus Estimate by 12.55%. While the bottom line declined significantly year over year, the top line increased 34.5%.

Stocks to Consider

Here are some companies within the broader Industrial Products sector, which, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Allegion (ALLE - Free Report) has an Earnings ESP of +4.19% and a Zacks Rank #2. The company is scheduled to release fourth-quarter results on Feb 22.

The Zacks Consensus Estimate for Allegion’s fourth-quarter earnings has been unchanged in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 8.8%, on average.
 
Lincoln Electric (LECO - Free Report) has an earnings ESP of +2.71% and a Zacks Rank #2. The company is scheduled to release fourth-quarter results on Feb 21.

The Zacks Consensus Estimate for Lincoln Electric’s fourth-quarter earnings has been revised upward by a penny in the past 60 days. The company delivered a trailing four-quarter earnings surprise of 11.6%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lincoln Electric Holdings, Inc. (LECO) - free report >>

Allegion PLC (ALLE) - free report >>

Axon Enterprise, Inc (AXON) - free report >>

Published in