Axon Enterprise (AAXN) Beats on Q1 Earnings and Revenues
Axon Enterprise, Inc.’s AAXN first-quarter 2017 earnings came in at 7 cents per share, beating the Zacks Consensus Estimate of 3 cents by 133.3%. This Scottsdale, AZ-based company’s earnings also improved 16.7% year over year. The upside was mainly driven by higher gross profit as well as operating income.
Total Revenue
In the quarter, the company generated revenues of $79.2 million, beating the Zacks Consensus Estimate of $69 million by 14.2%. The reported number also increased 42.7% 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 jumped 25.8% year over year to $57.7 million. Software and sensors segment revenues surged 122.5% to $21.6 million.
Segment bookings declined 17.1% to $60.1 million as of Mar 31, 2017, from $72.5 million in the preceding quarter. However, bookings increased 15.4% year over year in the quarter.
Highlights of the Quarter
The company’s gross margin expanded 830 basis points year over year to 61.4% from 53.1% a year ago.
Total operating expenses increased 36.4% year over year to $43.3 million. The increase was primarily driven by higher sales, general and administrative expenses (up 24.3%) and research and development expenses (up 79.9%).
Financials
The company had cash and cash equivalents of $42 million as of Mar 31, 2017, compared with $40.7 million as of Dec 31, 2016. Net cash used by operating activities was $6.6 million in the first quarter compared with cash inflow of $7.1 million in the year-ago period. Free cash flow was $17.4 million versus $5.7 million a year ago.
Zacks Rank
Axon Enterprise presently carries a Zacks Rank #4 (Sell).
Peer Releases
Allegion plc ALLE currently carries a Zacks Rank #2 (Buy). The company topped quarterly earnings estimates by 5.80%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MSA Safety Incorporated MSA, another Zacks Rank #2 exceeded its quarter earnings estimates by 16%.
Fortune Brands Home & Security, Inc. FBHS currently carries a Zacks Rank #3 (Hold). It surpassed quarterly earnings estimates by 15.22%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fortune Brands Home & Security, Inc. (FBHS): Free Stock Analysis Report
MSA Safety Incorporporated (MSA): Free Stock Analysis Report
Allegion PLC (ALLE): Free Stock Analysis Report
TASER International, Inc. (AAXN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
