Axon jumps 16% after TASER maker tops results and boosts outlook on security needs

Axon Enterprise's stock popped 16% after the TASER maker surpassed Wall Street's estimates and boosted its guidance due to robust demand for its security solutions.

"Demand for new technology from our customers is accelerating, and it's outpacing even my most optimistic expectations," said CEO Rick Smith on an earnings call with analysts. "There's now one breakout product driving conversations. It's everything."

The security solutions company also hiked guidance for the year, saying it now expects revenues of $2.65 billion to $2.73 billion. That's up from prior revenue guidance of $2.60 billion to $2.70 billion.

Revenues for the period jumped 33% from a year ago to about $668.5 million and topped an LSEG estimate of $631.6 million. The security solutions company posted adjusted earnings of $2.12 per share, ahead of the $1.46 expected per share.

Axon said it has seen increased demand for its bodycams, drones and counter-drone technology due to emerging security and drone threats and experienced growth across segments.

The company's TASER unit grew 19% from about $181 million to $216 million, while software and services jumped about 39%. Revenues for personal sensors and platforms solutions reached $93 million and $67 million, respectively. More than 30% of bookings came from new products, Axon said.

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