TASER Maker Axon Enterprise Stock Hits a Record on Sales, Outlook
Key Takeaways
Axon Enterprise (
AXON
) shares soared to an all-time high Wednesday after the TASER maker posted better-than-expected sales and boosted its full-year guidance on strong services demand and excitement about its Draft One
artificial intelligence (AI
) product.
The supplier of military and police gear reported second-quarter revenue jumped 34.6% year-over-year to $504.1 million, well above the average estimate of $478.2 million of analysts surveyed by Visible Alpha.
Earnings per share (EPS
) of $0.53 were in line with forecasts.
Sales at Axon Cloud & Services unit surged 46.8% to $194.7 million, driven by growing adoption of its software applications. Sensors & Other segment sales gained 28.4% to $112.4 million on demand for its Axon 4 body camera. TASER sales increased 27.6% to $197.0 million, fueled by the newest model, the TASER 10.
Draft One Receives Positive Feedback
In a letter to shareholders, Axon noted that the Draft One service launched in April “has received the best early customer feedback of any product we have introduced and supports our strategy to build for future technology.” Draft One creates the first draft of a police report extracted directly from Axon body camera recordings.
The company now sees full-year revenue in a range of $2.0 billion to $2.05 billion, up from its earlier outlook of $1.94 billion to $1.99 billion.
Shares of Axon Enterprise jumped 19% to $350.40 as of 1:15 p.m. ET Wednesday after hitting an all-time high $367.95 earlier in the session. They have risen more than 35% this year.
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