Axon (AXON) Q4 Earnings: A Closer Look at Key Metrics and Estimates

Axon Enterprise (AXON) has reported its fourth-quarter earnings for the period ending in December 2024. The company generated impressive revenue of $575.15 million, reflecting a significant year-over-year increase of 33.1%. In terms of earnings per share (EPS), Axon achieved $2.08, which is a substantial rise from $1.12 reported in the same quarter last year.

Comparatively, this reported revenue surpassed the Zacks Consensus Estimate of $566.07 million, showing a positive surprise of 1.60%. Additionally, Axon also experienced an EPS surprise of 35.95%, with the consensus EPS estimate prior to the announcement being $1.53.

While the headline numbers—revenue and earnings—are crucial for investors, analyzing key performance metrics helps in understanding the company's overall performance more deeply. These metrics can influence both top-line and bottom-line figures and are essential for estimating potential stock price movements.

Key Performance Metrics

The following outlines Axon’s performance in the latest quarter based on essential metrics commonly tracked and analyzed by Wall Street:

• Annual Recurring Revenue: $1,001 million compared to the average estimate of $940.51 million from two analysts.
• Net Sales - Software and Sensors: $353.91 million, slightly exceeding the five-analyst average estimate of $351.91 million, with a year-over-year growth of 30.7%.
• Revenue - TASER: Recorded $221.23 million, beating the average estimate of $214.16 million from five analysts, representing a 37.1% increase compared to last year.
• Net Sales - Services - Software and Sensors: $230.33 million against the five-analyst estimate of $222.21 million, marking a 40.8% year-over-year change.
• Net Sales - Products - Software and Sensors: $123.59 million, while slightly below the average estimate of $129.70 million, demonstrated a 15.3% increase from a year ago.
• Net Sales - Products - TASER: Achieved $206.62 million, which is above the $201.48 million average estimate provided by four analysts, showing a change of 36.6% year-over-year.
• Net Sales - Services - TASER: Grew to $14.62 million, surpassing the $14.33 million average estimate among four analysts, with a year-over-year increase of 44.6%.
• Net Sales - Products: Reported $330.21 million, slightly below the $332.80 million average estimate of four analysts, showing a 27.8% increase from last year.
• Net Sales - Services: At $244.94 million, exceeding the average estimate of $233.19 million from four analysts, reflecting a growth of 41%.
• Net Sales - Products - TASER - Extended Warranties: Achieved $10.35 million, against the $9.07 million estimate by two analysts, demonstrating a 25.8% year-over-year increase.
• Net Sales - Products - TASER - Other: A strong performance with $12.05 million, compared to an expected $6.07 million, showing a remarkable growth of 169.4%.
• Net Sales by Product - Software and Sensors segment - Axon Body: Reported $66.26 million, which was below the average estimate of $73.61 million from two analysts. However, this represents a year-over-year growth of 12.4%.

Market Performance

Over the past month, shares of Axon have declined by 17.4%, contrasting with the -1.8% change seen in the Zacks S&P 500 composite. Currently, Axon holds a Zacks Rank of 3 (Hold), suggesting that its stock could perform in line with the broader market in the near future.

Earnings, Finance, Stocks