What Happened:
Shares of aerospace and defense company AXON (NASDAQGS:AXON) jumped 24.6% in the morning session after the company reported a "beat and raise" quarter. Axon blew past analysts' revenue and EPS expectations this quarter. Moving on, it raised its full-year revenue and EBITDA guidance, which exceeded Wall Street's estimates. Zooming out, we think this was a great quarter that shareholders will appreciate.
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What is the market telling us:
Axon's shares are quite volatile and over the last year have had 5 moves greater than 5%. But moves this big are very rare even for Axon and that is indicating to us that this news had a significant impact on the market's perception of the business.
Axon is up 39.4% since the beginning of the year, and at $350.43 per share, has set a new 52-week high. Investors who bought $1,000 worth of Axon's shares 5 years ago would now be looking at an investment worth $5,350.
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