Stock Story -
Aerospace and defense company AXON (NASDAQGS:AXON) will be reporting earnings tomorrow after market hours. Here's what to expect.
Axon beat analysts' revenue expectations by 4.3% last quarter, reporting revenues of $460.7 million, up 34.3% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' volume and earnings estimates.
Is Axon a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Axon's revenue to grow 27.6% year on year to $477.9 million, slowing from the 31.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.98 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Axon has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 7.3% on average.
Looking at Axon's peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Huntington Ingalls delivered year-on-year revenue growth of 6.8%, beating analysts' expectations by 4.7%, and Lockheed Martin (NYSE:LMT) reported revenues up 8.6%, topping estimates by 6.5%. Huntington Ingalls traded down 5.9% following the results while Lockheed Martin was up 8.5%.
Read the full analysis of Huntington Ingalls's and Lockheed Martin's results on StockStory.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 2.8% on average over the last month. Axon is down 3.4% during the same time and is heading into earnings with an average analyst price target of $369.6 (compared to the current share price of $292.3).
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