TASER International Inc. 's TASR third-quarter 2015 earnings came in at 3 cents per share, missing the Zacks Consensus Estimate of 8 cents by a wide margin of 62.5%. This Scottsdale, AZ-based company's earnings also plunged 78.6% from the year-ago figure of 14 cents per share.
The decrease was mainly driven by lower contributions from the TASER Weapon segment and higher operating expenses.
In the quarter, the company generated revenues of $50.4 million, beating the Zacks Consensus Estimate of $47 million by 7.2%. The reported number also increased 13.6% from the third quarter of 2014. The upside is attributable to higher sales from the Axon segment.
Revenues from the TASER Weapons segment decreased 1.2% year over year to $39.5 million. A decrease in sales of legacy TASER X26 CEW, which was retired from production as of Dec 31, 2014, was partly offset by a year-over-year increase in cartridge sales of $0.9 million.
AXON and EVIDENCE.com revenues surged 150.2% to $10.9 million due to a 168.7% increase in service revenues. Segment bookings skyrocketed 141.2% to $36.9 million from the year-ago level of $15.3 million.
Highlights of the Quarter
The company's gross margin contracted 300 basis points year over year to 61.7% in the quarter.
Sales, general and administrative expenses increased $5.4 million year over year to $17.8 million.
Total operating expenses increased 49.4% year over year to $24.4 million.
The company had cash and cash equivalents of $401.6 million as of Sep 30, 2015, compared with $90.4 million as of Dec 31, 2014.
TASER currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the space include Napco Security Technologies, Inc. NSSC , Lakeland Industries Inc. LAKE and Net 1 Ueps Technologies Inc. UEPS . While Napco Security and Lakeland Industries sports a Zacks Rank #1 (Strong Buy), Net 1 Ueps carries a Zacks Rank #2 (Buy).
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