Shares of Axon Enterprise (NASDAQ: AXON) leaped 17.7% higher through 10:25 a.m. ET on Wednesday after the company reported a huge earnings beat last night.

Heading into Q2 2023, analysts had forecast the maker of Taser stun guns and Axon police body cameras would earn only $0.62 per share on $350.5 million in sales. But then Axon went and reported a profit of nearly double what was expected -- $1.11 per share -- and a beat on sales as well -- $374.6 million.

Total sales for the quarter grew 31% year over year (YOY), led by Axon Cloud and services revenue, which was up 62% YOY. At $133 million, this high-margin recurring revenue now accounts for 38% of Axon's revenue stream -- and is growing at a 52% annualized rate.  

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Source Fool.com