Why Taser International (TASR) Stock Is Climbing Today

NEW YORK (TheStreet) -- Shares of Taser International  (TASR) are up 1.23% to $15.59 in midday trading Tuesday after research firm Craig-Hallum said the developer of electronic weapons and wearable cameras for police officers is poised to receive a "massive" contract from the London Metropolitan Police Service.

The London Metropolitan Police Service, which is one of the world's largest police agencies, expanded its ongoing pilot program that uses the company's wearable cameras. Evidence.com, a Taser business unit, is supplying an additional 500 cameras for the program.

The order doubles the total number of cameras in the program to 1,000.

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 a few notable strengths, 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 15.5%. 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 3.54, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 65.42%. 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, TASR's net profit margin of 10.44% compares favorably to the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • TASER INTERNATIONAL INC's earnings per share declined by 12.5% in the most recent quarter compared to 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 $0.34 versus $0.27 in the prior year. For the next year, the market is expecting a contraction of 5.9% in earnings ($0.32 versus $0.34).
  • You can view the full analysis from the report here: TASR Ratings Report

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