By Aatreyee Dasgupta

(Reuters) -Shares of Axon Enterprise ( AXON ) slipped 19% in premarket trading on Wednesday, a day after the Taser maker missed analysts' estimates for third-quarter profit due to higher costs from U.S. tariffs.

The Arizona-based Axon's shares had fallen nearly 21% after market hours on Tuesday following the results.

The company also supplies police body cameras in the U.S and drone systems to law enforcement across North America, Europe and Australia.

"This was the first quarter that we had a full quarter of impact from tariffs. So as we look at the year-over-year step down, that really is attributable to tariffs," CFO Brittany Bagley said in a post-earnings call.

Axon buys components from suppliers in the U.S., Taiwan, Mexico, China, Vietnam, Thailand and the Republic of Korea, as per its latest annual report.

"While we acknowledge investor apprehension, particularly given the valuation, we believe these concerns are likely overblown," analyst Joseph Cardoso said in a J.P. Morgan equity research note on Wednesday.

"We see no slowdown or fundamental concerns and would take advantage of the weakness to add to positions," analysts at TD Cowen Global Research said, also on Wednesday.

On an adjusted basis, Axon earned $1.17 per share for the quarter ended September 30, while analysts on average estimated $1.52 per share, according to data compiled by LSEG.

But the company's quarterly revenue rose 31% from a year ago, driven by strong demand across segments. Axon also raised its annual revenue forecast to $2.74 billion, up from its previous range of $2.65 billion to $2.73 billion.

Its shares have risen nearly 19% so far this year, as of Tuesday's close.