TASER International Inc. TASR is once again in the spotlight with its shares climbing 5.41% yesterday after it disclosed new orders for its Axon body-cameras from the Fresno Police Department.
The order also includes a five-year subscription to Evidence.com as well as an upgrade to the Officer Safety Plan. TASER said that it had received and shipped an order for 300 Axon body cameras for the Fresno Police Department in the second quarter.
The growing demand for AXON body cameras and EVIDENCE.com reflects law enforcement agencies’ shift in focus to increase transparency in their police activities.
Though small in size, AXON cameras are conveniently visible and can be attached to everyday accessories such as uniforms, sunglasses, cap, shirt collar or a head mount. The camera also features a wider angle of view. Moreover, the Retina Low-Light technology enhances night vision. An accompanying pocketsize battery pack ensures uninterrupted recording through an entire shift.
TASER has lately been a hot stock riding on robust demand for its body-worn cameras in the wake of the President’s call to maximize transparency and accountability between the law enforcing agencies and the public. Obama was concerned that the Ferguson incident would result in a serious lack of trust between the police and the community at large. He believes that the new standards and body-worn cameras will make the police force more judicious in its use of firearms, thereby reducing unfortunate incidents like the Ferguson case.
Last December, President Obama proposed a funding of $263 million for the purchase of 50,000 body-worn cameras for law enforcement agencies. The funding includes $75 million over three years to be spent by the police on the purchase of cameras. The overall funding also includes provisions for additional training of police officers.
The White House plans to equip 50,000 officers with cameras, thereby doubling the number presently in use in the country (read: TASER Shares Up on Obama's Call for Body Cameras).
This is expected to boost the top line of the likes of TASER, Digital Ally DGLY and GoPro, Inc. GPRO, a developer of action-cameras. GoPro, which went public on Jun 27, 2014, also sells body cameras to law enforcement agencies.
Recently, TASER won orders from London Police and from the New Orleans Police Departments as well (read more: TASER's AXON Body Cameras Sold to London Police).
TASER’s first-quarter 2015 earnings beat Street expectations by a whopping 116.7% and also increased significantly from the year-ago number. The increase was mainly driven by strong contributions from its TASER Weapons segment, as well as continued growth and new wins in the AXON business. AXON and EVIDENCE.com revenues surged 73.1% year over year in the quarter due to a 185.6% increase in service revenues. Segment bookings skyrocketed 288% to $22.9 million from the year-ago level of $5.9 million.
TASER currently has a Zacks Rank #2 (Buy). Lakeland Industries Inc. LAKE is also a better-ranked stock in the space holding a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment