Axon Enterprise (AXON 0.04%) shocked analysts by posting third-quarter financial results Thursday that blew past estimates. Where Wall Street expected profits to tumble nearly 30% from the year-ago period, the maker of TASER conducted electrical weapons and Axon body cameras actually saw them surge 43% higher.
Although analysts did expect revenue would rise a modest 15% year over year, Axon instead enjoyed a 27% gain.
A stunning achievement
Considering all the civic unrest that has occurred this year across the country, Wall Street needn't have been so timid in its outlook.
Axon reported federal government bookings rocketed 400% over last year as the Department of Homeland Security placed the largest TASER contract in the company's history, worth $15 million. It also secured a $13 million contract with U.S. Customs & Border Protection for body cams and digital evidence management.
An additional $10 million in bookings from federal customers came from Axon's first indefinite delivery, indefinite quantity contract with an unnamed agency. Axon also signed its first Officer Safety Plan subscription bundle, which includes the TASER 7, Axon Body 3, and various cloud software features, and sold its first order of body cameras and digital evidence management systems to the Department of Defense.
Total revenue of $166.4 million beat analyst expectations of $150.3 million while adjusted earnings of $0.40 per share trounced forecasts of just $0.20 per share. On a generally accepted accounting principles (GAAP) basis, Axon generated a loss of $1 million, or $0.01 per share.
The stun gun maker's fourth-quarter revenue guidance of between $175 million and $185 million also beat the Street's consensus forecast of $175 million, with full-year guidance of $720 million to $750 million beating expectations of $710 million.
Axon Enterprise's stock was up 5% in premarket trading Friday.