What happened
Shares of Axon Enterprise (AXON 1.66%) jumped as much as 15.8% in morning trading on Wednesday after the law enforcement equipment company reported second-quarter results. Shares held gains throughout the day and are up about 15% at 2:16 p.m. ET.
So what
Axon's revenue jumped 31% in the quarter to $285.6 million, and adjusted earnings were $0.44 per share. Analysts were expecting earnings of $0.38 per share and $258 million in revenue.
Management also slightly increased its outlook for the full year. Revenue is now expected to be between $1.07 billion and $1.12 billion, a $20 million increase in the guidance range. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now forecast to be $190 million to $200 million.
Now what
There's really a lot to like about Axon's results last quarter. Taser sales were up 20.5% from a year ago, body camera sales jumped 49.2%, and cloud-storage sales were up 35.1%. The company continues to execute on a strategy of improving products for law enforcement and steadily expanding hardware and cloud services that work together.
Consumer sales haven't started to pick up yet, so there's still potential upside there. Those sales were just $5.2 million in the quarter, and management thinks the consumer business could be as big as the law enforcement side someday. Given the focus on protection products and improving law enforcement worldwide, this is a well-positioned company and a stock I intend to hold for the long term.
