Taser maker Axon plunges 12% after earnings fall short due to tariff hit
News Summary
Taser maker Axon Enterprise's stock plummeted 12% after missing Wall Street's third-quarter profit expectations, marking its worst session since May 2023. Adjusted earnings totaled $1.17 per share, falling short of a $1.52 per share forecast from LSEG, primarily due to tariff impacts which caused adjusted gross margins to fall 50 basis points year-over-year to 62.7%. The tariffs most significantly pinched Axon's connected devices business, including its Taser and counter-drone equipment, which saw revenues increase 24% year-over-year to over $405 million. Despite this, total revenues grew 31% from a year ago to $711 million, topping analysts' expectations of $704 million. Axon lifted its full-year revenue outlook to $2.74 billion and expects Q4 revenues between $750 million and $755 million, both above analyst forecasts. The company also announced the acquisition of emergency communications platform Carbyne for $625 million, expected to close in Q1 next year. The CFO indicated tariffs are a
Background
Axon Enterprise, formerly Taser International, is an American company known for manufacturing Tasers, body cameras, and related software and technology used by law enforcement agencies. The company holds a significant position in the security and public safety technology market, with its products widely adopted by law enforcement globally. During President Trump's administration, his government's trade policies, including the imposition of tariffs, have had a notable impact on supply chains and cost structures across various industries in the U.S. and globally. The tariff impact mentioned in Axon's earnings report likely pertains to imported components or finished goods, reflecting the ongoing cost pressures these policies exert on specific manufacturing firms. Despite tariff challenges, Axon's stock has performed strongly over the past year, indicating sustained demand for its security tools.
In-Depth AI Insights
How does Axon's earnings miss due to tariffs reflect the ongoing impact of the Trump administration's trade policies on diversified tech manufacturers? - The characterization of tariffs as a