Axis Strong Q2 2018 Results

By: John Honovich, Published on Aug 20, 2018

Axis reported strong Q2 2018 financial results and, for the first time in many years, Axis grew faster than Hikvision.

However, the company's strong growth has not come without problems as Axis faces a product shortage for the second year in a row.

Inside this note, we examine:

  • Key drivers of Axis growth
  • Geographic strength and weakness for Axis
  • The impact of the product shortage
  • Why Axis gross margins may be too high
  • Axis growth vs Hikvision and potential financial impact of the ban

**** ******** ****** ** 2018 ********* ******* ***, for *** ***** **** in **** *****, **** grew ****** **** *********.

*******, *** *******'* ****** growth *** *** **** without ******** ****** ***** * ******* shortage*** *** ****** **** in * ***.

****** **** ****, ** examine:

  • *** ******* ** **** growth
  • ********** ******** *** ******** for ****
  • *** ****** ** *** product ********
  • *** **** ***** ******* may ** *** ****
  • **** ****** ** ********* and ********* ********* ****** of *** ***

[***************]

Financials ********

**** **** **% ** Q2 ****, ** ***** currency *****, **** **** year. ********, ***** ******* increased **** **.*% ** 55% *** *** ******* jumped **** *.*% ** 16.5%.*** **** ** **** financial ******.

3,000+ *********

**** *** ******* **** than *,*** *********, ** from ~*,*** * ***** ago, **** ********** **** ****** ******** *********** office**** ****** ** **** 100 ********* ** *** next *** *****.

Geographic ********* - ******** *****

*** ******** ***** **** overall ****** **** **% while **** *** * modest **%. 

**** *** **** * years, **************, **** *** strengthened *** ********* ** the ********, *** *********** 60% ** ***** ******* while **** *** ********* in **** ** ** has ******* **** ******* out ** *** ******* Chinese ****** ******, ** the *********** ********** ********* below *****:

Impact ** ******* ********

**** *** *** **** clear *** **** ***** product ******** *** ******** their ******* ******. *** impact *** ** **** felt ** ** ****, as **** ** **** the ******* ******* ****** (i.e., **** ****).

Too **** ***** *******?

**** ******* **** **** revenue ****** ** *** spike ** *******:

***** ****** ******** ** a ****** ***** *** amounted ** **.* ******* (51.3) ****** *** *******, which *** ** ********* by, ***** ***** ******, a ********* ******* *** and ******** ******** *******.

*** *****, **** ***** margins **** **** ** the **% *****, **** 55% ***** *************** ****. Strengthening ***** ******* (**** strong ******* ******) ** certainly * ******** **** as ** ***** * company *** ******* * premium ** *** ****** relative ** *** **** of **********.

*******, *** **** ***** margins *** **** **** a ****** *********** ** lower ****** *** **** overall ******* *** ****** share.

Hikvision **********

*******,*********'* ******** ***** ******* plunged** *** **** **** period, ******** **** ****** 50% ** **.*%. ********, Hikvision's ******* ** ****** decelerated ** ~**%, ***** than **** ******.

**** ** * ******** of *** **** *** years, ***** *********'* ********* domestic ******** *** ***** investment ** ******** ********* had ********* ************* ********** Axis.

Future ******?

*** **** ******** **** trend? **** ** **** a *** ******* ******* against ****:

** *** ***** ****, Axis *** ********* ***** pricing, ********* ** ****** heavily ** *** ******** and, ** ***** ******* market, **** ******* **** the *** ***.

Poll / ****

Comments (3)

****** * **** ***** a *** ** ***** Manufacturers *** *********, **** is * ****** **** that ***** ***** ****** out ***** **** *** not **** ****** ** price - * ***** sign *** *** ******** as * *****.

* ***** ***** *** other ************* ****** **** they *** **** ************ component ********* ********* **** to *** *** ******: some ********** **** ********* from *****, ***** *******, our ******** ************* *** with ******** ************, ****** for ****** ** *** same **** ****. ***** find * ****** **** on **** ***** ***** be ******* ** *** strategic *******.

******* **** *** ******* numbers ***** **** **** if **** ***** *********** and **** *** *** cameras ** **** ***** 

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