Axon (AXON), a company specializing in law enforcement technology, reported better-than-expected financial results for the third quarter of the year.
Axon posted earnings per share (EPS) of $1.02, exceeding the analyst consensus of $0.76. The company's revenue for the quarter amounted to $414 million, marking a 33% year-over-year increase and surpassing the consensus estimate of $391.2 million.
The Taser segment posted net sales of $162.6 million, a 12% YoY increase, compared to an estimated $162 million. The Software and Sensors segment reported net sales of $251.0 million, reflecting a substantial 50% annual growth, exceeding the estimated $230 million.
The gross margin for the quarter was 61.7%, slightly lower than the 62% recorded in the same period the previous year but still above the estimated 60.4%.
“Record revenue across categories in the third quarter reflected broad-based demand for new products,” said the company in an earnings release.
“Axon's seventh consecutive quarter of over 30% year-over-year revenue growth is a reflection of and testament to our track record of solid execution; product market fit; deployment of capital toward innovation that solves real-world pain points for customers; and growing demand from state and local, federal, international and enterprise customers.”
Axon foresees revenue for the full year 2023 to reach $1.55 billion. This projection is higher than the consensus estimate of $1.53 billion.
“We reiterate our Buy rating on better-than-expected Axon Cloud & Services revenue, ramp up in TASER10 and Axon Body 4, expansion of federal government TAM, and focus on international expansion,” analysts at Goldman Sachs said.