Actions of Axon Company (NASDAQ: AXON) rose 4.5% in afternoon trading on Friday after the stun gun maker reported fourth-quarter profits that far exceeded analysts’ expectations.
Axon has new competition in the connected law enforcement space after Motorola Systems (NYSE: MSI) launched a suite of billed products as Video as a Service. The products include cameras, recordings and digital evidence management, as well as cloud-based support, and Motorola is bringing financial leverage that could make it an even more powerful rival.
Yet, given that Axon’s Taser Pulse Electric Weapon is an essential piece of law enforcement equipment, adopted as a less-than-lethal primary device by virtually every major U.S. police department, the company still has a significant competitive advantage.
Sales of the Taser 7, Axon’s latest cloud-connected AI, jumped 61% in the quarter, largely on the back of a $ 20 million order from an international customer. This is the biggest contract ever won in Axon’s history.
Total revenue of $ 226 million beat Wall Street forecast of $ 181 million, as did adjusted earnings, which stood at $ 1 per share against the consensus estimate of $ 0.36 per share. action.
Analysts believe Axon Enterprise has good winds behind it and a strong competitive position. Baird analyst William Power raised his price target for Taser maker to $ 200 per share, 25% above the share’s close yesterday.
With its new computer-aided dispatch system, a new drone program and the depth of its existing products, Axon appears well positioned for further growth.
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