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

Axon Enterprise, Inc. 's AAXN 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.

Axon Enterprise, Inc Price, Consensus and EPS Surprise

Axon Enterprise, Inc Price, Consensus and EPS Surprise | Axon Enterprise, Inc Quote

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%).

Financials

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 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 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 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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