TASER International Inc. (TASR) reported earnings of 14 cents per share during the third quarter 2014, beating the Zacks Consensus Estimate by 55.6%. The beat was driven by higher law enforcement weapon handle sales.
The quarterly figure was also higher than the year-ago profit of 10 cents per share by 40%.
Highlights of the Quarter
In the third quarter, the company booked revenues of $44.3 million, beating the Zacks Consensus Estimate of $39 million. The reported number also increased 26% from $35.2 million in the third quarter 2013. The solid results were attributable to higher sales from numerous law enforcement agencies. During the quarter, TASER’s international revenues clocked $6.7 million, showing an increase of $3 million year over year.
The company’s gross margin expanded 190 basis points year over year to 64.7% in the quarter, driven by higher sales leveraging better overhead expenses and also gaining from higher selling prices.
Sales, general and administrative expenses decreased 3.1% year over year to $12.4 million in the third quarter of 2014.
Quarterly Segmental Details
TASER Weapons revenues jumped 26.5% year over year to $40 million in the quarter.
EVIDENCE.com & Video revenues saw a 21.5% improvement to $4.3 million in the third quarter of 2014. AXON cameras and EVIDENCE.com bookings of $15.3 million shot up 163.8% year over year.
Financials
The company had $74 million of cash and cash equivalents as of Sep 30, 2014 compared with $63.4 million at 2013 end. The company generated $16.7 million in cash from operating activities during the quarter under review.
Our Take
With over $15 million in EVIDENCE.com and AXON bookings, TASER’s order book continues to impress.
The company is seeing increasing uptake on AXON cameras and TASER Cam recorders. Besides, TASER is registering consistent growth in the North American weapons business which grew 20% year over year as a result of its strong Smart Weapon platform. The company’s new Smart Weapon platforms offer significant improvements in safety, effectiveness and accountability.
TASER invests considerably in upgrading existing and producing new products that make life safer in public places. During the third quarter 2014, research and development expenses were $3.8 million, up $1.3 million year over year due to additional personnel expense associated with EVIDENCE.com & Video segment product development initiatives.
TASER International currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Alliant Techsystems Inc. (ATK), Allegion plc Ordinary Shares (ALLE) and Net 1 Ueps Technologies Inc. (UEPS), all carrying a Zacks Rank #2 (Buy).
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