TASER (TASR) Stock Advances on London Metropolitan Police Sale
NEW YORK (TheStreet) -- TASER International (TASR) stock is soaring 6.20% to $19.37 in midday trading on Tuesday, after the electrical weapons company announced a new sale to London's Metropolitan Police Officers.
The Scottsdale, AZ-based company will outfit 22,000 frontline officers with its Axon Body Cameras, TASER said in a statement on Tuesday.
The London department piloted 1,000 of TASER's body cameras earlier this year and was considered a success, the company said. Complaints against police officers dropped 33%.
Final contract details are still being negotiated, TASER said. Additional information on the sale will not be released until its 2015 financial results are released in February 2016, the company added.
"Our Axon platform is now the most widely used body camera and digital evidence management solution in law enforcement, providing new and innovative ways to maximize officer safety while enhancing the level of trust of citizens through the collection of video evidence." TASER CEO Rick Smith said in a statement.
Separately, TheStreet Ratings team rates TASER INTERNATIONAL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate TASER INTERNATIONAL INC (TASR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- TASR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.63, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $19.35 million or 16.00% when compared to the same quarter last year. Despite an increase in cash flow, TASER INTERNATIONAL INC's average is still marginally south of the industry average growth rate of 20.88%.
- The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 62.50%. Regardless of TASR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.01% trails the industry average.
- TASER INTERNATIONAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.36 versus $0.34 in the prior year. For the next year, the market is expecting a contraction of 13.9% in earnings ($0.31 versus $0.36).
- You can view the full analysis from the report here: TASR
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.