Axon Enterprise Inc (NASDAQ: AAXN) provide a network of devices, apps, and people, to aid law enforcement agencies. 

AAXN shares hit the new 52-week high of $34 today after the company has topped the revenue and earnings expectations for the fourth quarter. Additionally, Axon Enterprise added to trader’s sentiments amid a stronger than expected outlook for fiscal 2018. AAXN stock soared close to 26% today, pushing the stock price to $34 and setting the solid uptrend for the following quarters.

Source Image: finviz.com

The company posted a record revenue of $344 million in fiscal 2018, up almost 28% from the past year. Its fourth-quarter revenue of $94.7 million increased 15% year-over-year, exceeding the consensus estimate by $5.27 million.

Its TASER Weapons revenue extended the momentum in the fourth quarter – up 10% to $64.4 million from the same period last year. Higher demand and favorable mix enhanced the gross margin above 70% from 69% in Q4 2016.

Axon partnered with Microsoft and that helped to win several contracts from major city police agencies. This improved its Software & Sensors segment revenue to $30.2 million in Q4 2017 – a growth of 27% year-over-year. Furthermore, the gross margin from this segment improved to 57% from 38% in the prior year period.

Solid Outlook Supports the Uptrend

The company’s investment in products and features expanded its market share, resulting in strong demand for its TASER Weapons and Software & Sensors segment.  Its bookings jumped to $71.2M, while future contracted revenue grew to $536M compared to $494M in Q3 – the full year annual bookings improved 15% Y/Y.

The company said, “Its Q1 2018 is off to a strong start for new orders, including its second largest body camera deployment of 11K to Australia’s Victoria Police backed by Evidence.com.”

The company expects revenue in the range of $399M-$406M for FY2018, relative to analysts estimates of $39M. Although the sharp rally in the AAXN share price increased its valuations from the industry averages, the prospects for revenue growth could be the catalyst for upside trend.

Featured Image: Twitter