Can AXON sustain its earnings growth into 2025?

Axon Enterprise (AXON) is poised to sustain its earnings growth into 2025, based on several key indicators: 1. **Strong Financial Performance**: Axon has demonstrated robust financial growth, with a net income year-over-year growth rate of 136.91% and a total revenue growth rate of 33.64% as of the end of 2024. The company's diluted EPS has also shown significant growth, with a year-over-year increase of 122.67%. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |AXON|AXON.O|Axon Enterprise|2024 Q1|195.12838122244622|1.33218E8|185| |AXON|AXON.O|Axon Enterprise|2024 Q2|228.4782608695652|4.0797E7|185| |AXON|AXON.O|Axon Enterprise|2024 Q3|9.32326412109152|6.7025E7|185| |AXON|AXON.O|Axon Enterprise|2024 Q4|136.91137554546887|1.35184E8|185| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |AXON|AXON.O|Axon Enterprise|2024 Q1|34.3085269193658|4.60736E8|185| |AXON|AXON.O|Axon Enterprise|2024 Q2|34.56814511285221|5.04099E8|185| |AXON|AXON.O|Axon Enterprise|2024 Q3|31.6968239296551|5.44274E8|185| |AXON|AXON.O|Axon Enterprise|2024 Q4|33.637795787869216|5.75145E8|185| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |AXON|AXON.O|Axon Enterprise|2024 Q1|183.6065573770492|1.73|185| |AXON|AXON.O|Axon Enterprise|2024 Q2|231.25|0.53|185| |AXON|AXON.O|Axon Enterprise|2024 Q3|6.1728395061728305|0.86|185| |AXON|AXON.O|Axon Enterprise|2024 Q4|122.66666666666666|1.67|185| 2. **Positive Market Outlook**: Analysts have projected a continuation of Axon's growth trajectory, with estimated EPS and revenue growth for the upcoming fiscal year. The Zacks Consensus Estimates predict earnings of $6.38 per share and revenue of $2.61 billion, reflecting changes of +7.41% and +25.15%, respectively, from the prior year. 3. **Strategic Growth Initiatives**: Axon's strategic initiatives, such as the growth of its Axon Cloud & Services segment and the expansion of its product offerings, are expected to contribute to continued revenue and earnings growth. The company has set a fiscal year 2025 revenue guidance of $2.55 billion to $2.65 billion, representing approximately 25% annual growth at the midpoint. 4. **Financial Health Metrics**: Axon's financial health indicators, such as the price to book ratio and price to sales ratio, are within reasonable ranges, suggesting that the company's earnings growth is not solely driven by high valuations but rather by strong underlying performance. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |AXON|AXON.O|Axon Enterprise|20240412|89.420907|0|14.549789726792362|185| |AXON|AXON.O|Axon Enterprise|20240415|87.263136|0|14.198696058792803|185| |AXON|AXON.O|Axon Enterprise|20240416|86.400028|0|14.058258591592981|185| |AXON|AXON.O|Axon Enterprise|20240417|86.259053|0|14.035320471950344|185| |AXON|AXON.O|Axon Enterprise|20240418|85.617476|0|13.930928621331809|185| |AXON|AXON.O|Axon Enterprise|20240419|84.47098|0|13.744380852401376|185| |AXON|AXON.O|Axon Enterprise|20240422|84.527083|0|13.753509287769365|185| |AXON|AXON.O|Axon Enterprise|20240423|86.759656|0|14.11677420292624|185| |AXON|AXON.O|Axon Enterprise|20240424|87.004204|0|14.156564818632857|185| |AXON|AXON.O|Axon Enterprise|20240425|88.106105|0|14.335856651757966|185| In conclusion, Axon Enterprise's strong financial performance, positive market outlook, strategic growth initiatives, and sound financial health metrics collectively support the likelihood of sustained earnings growth into 2025.