Axon Enterprises Guidance Support the Stock Uptrend

    Author Siraj SarwarPosted on Categories Aerospace & DefenseTags , , , , , , , , , , , , , , , , , , , , ,
    Axon Enterprises

    Axon Enterprises (NASDAQ:AAXN) is one of the most prominent gainers this year, supported by improving fundamentals and strengthening financial numbers. AAXN share price jumped 42% since the start of this year, allowing the stock price to double in the last twelve months.  AAXN shares are trading around $42 at present, up substantially from the 52-week low of $20 which was hit at the beginning of the second quarter last year.

    Axon Enterprises

    Source Image: finviz.com

    The company posted record revenue of $344 million in FY2017, up 28% from the previous year. It has also beaten revenue and earnings estimates for the fourth quarter by $5.27 million and $0.15 per share. Axon net sales in the fourth quarter jumped 15% to $97 million, driven by TASER Weapons segment revenue – which increased 10% from the same period last year.

    Axon Enterprises offers a network of devices, apps, and people that help law enforcement become smarter and safer.

    Positive Guidance Support Uptrend

    The stronger than expected growth in order backlog allowed Axon Enterprises to provide a positive guidance for this year. AAXN expect FY 2018 revenues in the range of $399M-$406M, higher from the consensus estimate of $39$M. The company also anticipates improvement in its earnings, amid a potential growth of 300-400 basis points in operating margin.

    The company’s booking enlarged to $71.2M in Q4, and its future contracted revenue soared to $536M from $494M in the previous quarter. The annual bookings grew 15% Y/Y to $291 in fiscal 2017, compared to $254M in 2016.

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    The company believes its business strategies are working. CEO said, “This year, we plan to introduce several new products and services and improve upon our existing suite of offerings – which we believe will grow recurring cash flows and increase average revenue per user. We’re also scaling up our offices across the world and cross-pollinating our internal groups to ensure we execute against one vision for Axon.”

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    Author Siraj Sarwar
    About the author: Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.