In 2024, Axon's stock experienced a significant surge, skyrocketing by an astounding 130%.
Unleashing the year with a bang, Axon Enterprise's (AXON -0.02%) shares soared in 2024, riding on the company's impressive performance and innovative products. This tech powerhouse, known for its lineup including Tasers and police body cameras, took a substantial leap, recording a remarkable 130% annual growth according to data from S&P Global Market Intelligence.
Glancing at the intriguing chart below, you'll notice the stock leaping following three out of its four earnings reports, showcasing continuous results surpassing expectations.
Axe to Grind: Axon's Impressive Stride
Over time, Axon has positioned itself as a formidable figure in law enforcement technology by means of strategic acquisitions and product innovations. Its prowess lies in the establishment of an unparalleled ecosystem of hardware and cloud software, which amasses data on evidence, arrest records, and more – offering a competitive edge.
During 2024, this edge significantly manifested. The stock witnessed its initial surge following the fourth-quarter earnings report, courtesy of the introduction of the Taser 10 and Axon 4 body camera. Revenue blasted 29% skyward, while Axon Cloud boosted the company's margins.
Axon trumpeted its acquisition of Fusus, the real-time crime center tech leader, and Sky-Hero, the drone and robotics company. These acquisitions projected Axon's total addressable market from $50 billion to an enviable $63 billion, propelling the company's growth trajectory.
The stock received another jolt in August when its second-quarter earnings revealed sales growth of 35% to $504 million. Axon Cloud and Services, which generated a soaring 47%, substantially contributed to the growth. Management enthusiastically revised its full-year revenue estimate, setting a new range of $2 billion to $2.05 billion, causing the stock to surge by 18%.
In November, shares jumped 29% once more during the third-quarter earnings report. The company reported a spectacular 36% growth in revenue, while the Draft One, a revolutionary AI tool for generating police reports from body camera footage, continued to gain traction.
Bearing witness to the year-end market sell-off, the stock briefly retreated, but valuation concerns couldn't tarnish its resilience for long.
Axon's 2025: The New Frontier
Axon's elevated valuation might pose a challenge in 2025 due to its inflated P/E and P/S ratios. Nonetheless, the company's technological advancements in AI, coupled with the Trump administration's stance on deportations, instills a positive outlook for the future. The stock's ascent to new heights this year may be markedly steeper, but the valuation barrier could prove an obstacle.
Now, here's a sneak peek into Axon Enterprise's estimated performance in 2025, courtesy of Zacks Consensus Estimates:
- Revenue (Q4 2024): $567.56 million
- Revenue (Q1 2025): $576.54 million
- Revenue (2024): $2.08 billion
- Revenue (2025): $2.55 billion
- EPS (Q4 2024): $1.51
- EPS (Q1 2025): $1.35
- EPS (2024): $5.29
- EPS (2025): $6.50
- Revenue Growth (2024): 32.80%
- Revenue Growth (2025): 22.62%
As you delve further into the intriguing realm of Axon Enterprise, remember that these estimates simply serve as a guiding light in this thrilling odyssey of high-stakes investments and technological innovation.
- To maintain its momentum in 2025, Axon Enterprise needs to navigate its elevated valuation due to high P/E and P/S ratios, a challenge induced by its impressive 2024 performance.
- Despite the potential obstacle, Zacks Consensus Estimates predict a positive outlook for Axon in 2025, with projected revenue of $2.55 billion and EPS of $6.50.
- Investors seeking to capitalize on future growth opportunities in the tech sector may consider Axon Enterprise's strategic investments in AI and its position in the law enforcement technology ecosystem.
- In 2025, Axon Enterprise plans to further expand its product offerings and services, potentially reaching new heights with technology advancements and potential policy changes from the Trump administration regarding deportations.
