Yahoo Finance

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at aerospace and defense stocks, starting with Axon (NASDAQ:AXON).

Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.

The 31 aerospace and defense stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.8% above.

While some aerospace and defense stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results.

Axon (NASDAQ:AXON)

Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.

Axon reported revenues of $575.1 million, up 33.6% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EPS estimates.

The stock is up 11.5% since reporting and currently trades at $555.

Read why we think that Axon is one of the best aerospace and defense stocks, our full report is free.

Best Q4: Mercury Systems (NASDAQ:MRCY)

Founded in 1981, Mercury Systems (NASDAQ:MRCY) specializes in providing processing subsystems and components for primarily defense applications.

Mercury Systems reported revenues of $223.1 million, up 13% year on year, outperforming analysts’ expectations by 23.9%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.

Mercury Systems pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.5% since reporting. It currently trades at $41.47.

Is now the time to buy Mercury Systems? Access our full analysis of the earnings results here, it’s free.