Taser Int'l. (TASR) Stock Continues to Climb Following DOJ Body Camera Investment

NEW YORK (TheStreet) -- Taser International (TASR) shares are climbing 4.14% to $33.71 in trading on Monday as the company continues to gain following its earnings release last week and an announcement that the U.S. Department of Justice plans to spend $20 million on body cameras similar to the one the company makes. 

The Justice Department's announcement of its investment in body cameras came on the same day that Maryland State Attorney Marilyn Mosby announced that her office was filing charges against six officers in connection to the death of Freddie Gibbs. 

The DOJ said that the investment was just the initial round of funding for its three-year $75 million plan to dispense 50,000 body cameras to police departments around the country. 

Separately, last week the Scottsdale, AZ-based company, which also makes electronic non-lethal weapons for law enforcement such as tasers,  reported a 18.1% increase in sales in its weapons segment to $38.3 million. Overall revenue increased 23.7% to $44.76 million, beating analysts' $39.97 million estimates.

The company reported earnings of 13 cents per diluted share for the period, more than double the 6 cents per share analysts had forecast.

"TASER International is off to an outstanding start in fiscal 2015 thanks to strength in the TASER Weapons segment, as well as continued growth and new wins in the AXON business," CEO Rick Smith said. "New programs such as the Standard Issue Grant Program are examples of how we are partnering with law enforcement agencies for the long-term, and we are enthusiastic thus far about the results of our investments."

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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 23.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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 3.69, which clearly demonstrates the ability to cover short-term cash needs.
  • TASER INTERNATIONAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.36 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus $0.36).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 112.5% when compared to the same quarter one year prior, rising from $3.39 million to $7.21 million.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 68.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.09% is above that of the industry average.
  • You can view the full analysis from the report here: TASR Ratings Report
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