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TASER International - Momentum
11/12/2012 12:00:00 AM
TASER International, Inc. ( TASR ) 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 250%.
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 consultancy charges.
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 708.3%.
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. ( PBAL ).
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TASER INTL INC (TASR): Free Stock Analysis Report
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