TASER International, Inc.
) reported a positive earnings surprise of 75% in its third
quarter, marking the sixth beat in the last seven quarters. On the
same day as its announcement, shares of this Zacks #1 Rank (Strong
Buy) manufacturer of electronic control devices reached a 52-week
high of $8.45.
Another Solid Quarter
On October 26, TASER International, Inc. reported third quarter
earnings of 7 cents per share, surpassing the Zacks Consensus
Estimate by 75% and beating the year-ago results by a whopping
The top line grew by 18% year over year to $28.8 million, sailing
past the Zacks Consensus Estimate of $26 million by 10.8%. The
company benefited from an extended upgrade program for its TASER
X2™ Electronic Control Device.
Research and development expenses declined by 16% from the
prior-year quarter due to a continuous cut in professional and
Earnings Estimates Driving Higher
In the past 30 days, the Zacks Consensus Estimate for 2012 rose
14.3% to 24 cents per share after all 3 estimates were revised
higher. This outlook implies a staggering year-over-year growth of
Two of three estimates moved north for 2013, boosting the Zacks
Consensus Estimate by 13% to 26 cents per share. This suggests a
year-over-year increase of 5.5%.
TASER International currently trades at a forward P/E of 33.25x,
reflecting a 132.3% premium to the peer group average of 14.31x.
Also, on a price-to-book basis, shares trade at 5.06x, a
substantial premium to the peer group average of 1.21x.
The premium valuation of the company is validated by its compelling
fundamentals and by its long-term estimated EPS growth rate of
30.0%, which is in line with the peer group average.
The return on equity (ROE) of 9.2% looks attractive compared with
the peer group average of 5.1%. This shows that management is
making profitable investments when compared to its peer group.
Market Performance & Technicals
The chart below depicts the full story, with the stock adding 54.1%
to $8.09 per share in just six months.
Following the earnings release, shares of TASER International have
fared better than the simple moving averages for 200 days of $5.56.
Volume is fairly strong, averaging roughly 634K daily. The
year-to-date return for the stock came in at 58.0%, much above the
NASDAQ's return of 11.2%.
Headquartered in Scottsdale, Arizona, TASER International Inc. was
founded in 1993. The company develops and manufactures electronic
control devices for law enforcement agencies. TASER sells its
products to its worldwide customers, directly and also through
distribution partners. With a market capitalization of $0.43
billion, the company has 313 full time employees. The company
competes with PepperBall Technologies, Inc. (
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