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SCOTTSDALE, Ariz. – Axon Enterprise, Inc. (NASDAQ:AXON), a leader in public safety technology with a market capitalization of $40.48 billion, announced its intention to offer $1.5 billion in senior notes, comprising two sets due in 2030 and 2033. The offering is exempt from registration under the Securities Act of 1933, as amended, and targets qualified institutional buyers and non-U.S. persons, in line with Rule 144A and Regulation S, respectively. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 2.3.
The proceeds from the sale of the 2030 and 2033 Notes are earmarked for general corporate purposes. These may include repurchasing or redeeming Axon’s 0.50% Convertible Senior Notes due 2027, as well as capital to support growth and investments in new products, services, or technologies. With impressive revenue growth of 33.44% and gross profit margins of 59.64%, Axon demonstrates strong operational performance. For deeper insights into Axon’s financial health and growth prospects, InvestingPro subscribers have access to over 30 additional key metrics and exclusive analysis.
The Notes will serve as general senior unsecured obligations of Axon, without initial guarantees from its subsidiaries. However, guarantees will be provided by any existing or future domestic subsidiary that secures Axon’s revolving credit facility or other specific debts, subject to certain conditions.
This private offering is not a public solicitation for sales, and the Notes will not be registered under the Securities Act or state securities laws. As such, they cannot be offered or sold within the United States without registration or an applicable exemption.
Axon is recognized for its ambitious goal to halve gun-related deaths between police and the public by 2033. Its extensive portfolio includes TASER devices, body cameras, in-car cameras, cloud-based evidence management, and real-time operations software, serving a global clientele of first responders and law enforcement agencies. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, though the company maintains strong fundamentals with analysts forecasting continued sales growth this year.
The information regarding this proposed offering is based on a press release statement and should not be construed as an offer to purchase or a redemption notice for existing securities. Axon’s future plans are subject to various risks and uncertainties, and there can be no assurance that the offering will be completed as described or that the net proceeds will be effectively applied as anticipated.
In other recent news, Axon Enterprise reported impressive fourth-quarter results, with revenue reaching $575.1 million, a 34% increase year-over-year, and surpassing forecasts. The company’s non-GAAP EPS was $2.08, significantly higher than the consensus estimate of $1.43. Axon’s adjusted EBITDA also exceeded expectations, registering at $142 million, a 56% increase from the previous year. The company has projected a revenue range of $2,550 million to $2,650 million for fiscal year 2025, aligning closely with consensus estimates. Analysts have responded with varied adjustments to Axon’s stock price target. TD Cowen raised its target to $725, citing strong forward-looking guidance and robust fourth-quarter performance. Conversely, Craig-Hallum adjusted its target to $600, maintaining a Hold rating due to market sentiment towards high-multiple stocks. Meanwhile, JPMorgan increased its target to $665, recognizing strong demand and a significant backlog, while Needham reiterated a $600 target, highlighting consistent growth across product categories. Citizens JMP maintained a $725 target, expressing confidence in Axon’s financial growth despite recent stock price declines.
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