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Key Takeaways
- Taser maker Axon Enterprise beat profit and sales estimates and boosted guidance on strong demand for its products and services.
- Taser sales rose 36%, and software and services sales gained 29%. Axon also announced a new artificial intelligence product initiative.
- The company’s shares jumped today and have more than doubled this year.
Axon Enterprise (AXON) shares touched all-time highs Friday after the Taser weapon maker reported better-than-expected results and guidance on soaring demand.
The police and military supplier posted third quarter earnings per share of $0.86, four times more than analysts surveyed by Visible Alpha were looking for. Revenue rose 31.7% to $544.3 million, also ahead of estimates.
Shares of Axon Enterprise, up some 25% today, are ahead more than 130% so far this year and were recently around record levels.
Taser sales were up 36.4% to $221.7 million. Sales of software and sensors gained 28.7% to $322.5 million, boosted by a 35.9% increase for its Axon Cloud Services products. The company said it is adding new products that use artificial intelligence, with CEO Rick Smith citing “not just a single product, but a commitment to continuous innovation for our customers.”
Axon now sees full-year revenue of $2.07 billion compared to its previous outlook of $2 billion to $2.05 billion. It anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $510 million versus the earlier expectation of $460 million to $475 million.
JPMorgan raised its price target on the stock to $530 from $485, just a bit below the Visible Alpha consensus.
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