What Happened?
Shares of self defense company AXON (NASDAQ:AXON) jumped 15.4% in the afternoon session after the company reported stellar second-quarter financial results and raised its full-year forecast. The public safety technology company announced its quarterly revenue climbed 33% year-over-year to $669 million, which surpassed analyst expectations. Earnings per share came in at $2.12, a significant jump from the prior year and a positive surprise of over 37% compared to estimates. This strong performance stemmed from a 39% increase in the company's high-margin Software & Services revenue. Axon's Annual Recurring Revenue (ARR), a key metric that showed sustained demand, also leaped 39% to $1.2 billion. Following the impressive quarter, Axon boosted its revenue and adjusted earnings guidance for the full year.
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What Is The Market Telling Us
Axon’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Axon and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 24.6% on the news that the company reported a "beat and raise" quarter. Axon blew past analysts' revenue and EPS expectations this quarter. Moving on, it raised its full-year revenue and EBITDA guidance, which exceeded Wall Street's estimates. Zooming out, we think this was a great quarter that shareholders will appreciate.
Axon is up 43.9% since the beginning of the year, and at $858.35 per share, has set a new 52-week high. Investors who bought $1,000 worth of Axon’s shares 5 years ago would now be looking at an investment worth $9,265.
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