Axon Shoots Prior To Generative AI Prototype News
Axon Enterprise (AXON), the supplier of Tasers, body cameras and cloud-based software to law enforcement, blew past third-quarter earnings estimates This week. Axon stock rose back into buy range ahead of Wednesday's open.
Axon Earnings
Results: Axon reported Q3 adjusted EPS of $1.02. That was 26 cents ahead of estimates and up 70% from a year ago. Revenue grew 33% to $413.6 million vs. $391.1 million estimates. It was the seventh straight quarter with at least 30% growth.
Net revenue retention, meaning the extent to which existing clients either extended, expanded or reduced Axon contracts, was steady at 122%.
Outlook: Axon raised its full-year revenue outlook to $1.55 billion, equating to 30% growth and up from the prior range of $1.51 billion to $1.53 billion. Adjusted EBITDA is now seen at $322 million, up from the earlier implied range of $302 million to $306 million.
The new guidance implies full-year adjusted EBITDA margin of 20.8%, above the earlier guidance of 20%. Axon has a longer-term target of reaching a 25% adjusted EBITDA margin.
Axon said sales of its new Taser 10 stun gun, which nearly doubles the range of the Taser 7, grew about 50% sequentially. The biggest three orders came from international customers and the corrections industry.
Technical Analysist
Price Momentum
AXON is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
Axon Earnings
Results: Axon reported Q3 adjusted EPS of $1.02. That was 26 cents ahead of estimates and up 70% from a year ago. Revenue grew 33% to $413.6 million vs. $391.1 million estimates. It was the seventh straight quarter with at least 30% growth.
Net revenue retention, meaning the extent to which existing clients either extended, expanded or reduced Axon contracts, was steady at 122%.
Outlook: Axon raised its full-year revenue outlook to $1.55 billion, equating to 30% growth and up from the prior range of $1.51 billion to $1.53 billion. Adjusted EBITDA is now seen at $322 million, up from the earlier implied range of $302 million to $306 million.
The new guidance implies full-year adjusted EBITDA margin of 20.8%, above the earlier guidance of 20%. Axon has a longer-term target of reaching a 25% adjusted EBITDA margin.
Axon said sales of its new Taser 10 stun gun, which nearly doubles the range of the Taser 7, grew about 50% sequentially. The biggest three orders came from international customers and the corrections industry.
Technical Analysist
Price Momentum
AXON is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
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