Axon Enterprise Jumps 4.5% in Profits, Secures Record Taser Orders


What happened

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.

So what

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.

Image source: Axon Entreprise.

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.

Now what

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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