TASER International Inc. (TASR) announced that the Los Angeles Police Department (“LAPD”) has placed an order for 3,130 X26P Smart Weapons.
The first order includes an upgrade of 2,270 of the old TASER weapons to the newer version. The order was received and shipped by the company in the fourth quarter of 2014. This order is part of the TASER Assurance Plan, which is being developed jointly by TASER and the LAPD. Per this Plan, TASER will provide maintenance and other services for the weapons for a period of five years along with their replacement with a TASER Smart Weapon after the period.
The second order for 860 TASER X26P Smart Weapons is an addition to the previous order of 860 Axon body-worn video cameras, which follows the Officer Safety Plan that is being rolled out by TASER and the LAPD. It is a service plan that includes automatic upgrades of the AXON cameras every 2.5 years and upgrades of the associated TASER devices every five years, along with full hardware equipment warranties and services. It is expected that the order will be shipped to LAPD in the first half of this year. (Read: TASER Body Cameras to be Used Widely by LA Police Force)
TASER’s X26P Smart Weapons are capable of recording the date, time and the duration of firing, which is aimed to ensure officers’ sensibility while using firearms in an attempt to reduce incidents like the Ferguson case.
The LAPD is presently focused on implementing safety measures, and maximizing transparency and accountability between the police and the community. Moreover, with the Obama government keen on ensuring no further cases happen like the one in Ferguson, demand for TASER’s Smart Weapons will likely rise, as other police departments are also expected to follow the LAPD’s suit. In Dec 2014, Mayor of Los Angeles announced a plan to equip 7,000 LAPD officers with body cameras by 2015.
This Zacks Rank #2 (Buy) company has reported upbeat performances in the past four quarters. It beat estimates in all the last four quarters, delivering an average positive earnings surprise of 71.39%. With orders only expected to grow forward, it is likely that TASER will continue posting impressive results.
Other stocks worth considering in the same sector are Net 1 Ueps Technologies Inc. (UEPS), Teledyne Technologies Inc. (TDY) and Brady Corp. (BRC). While Net 1 sports a Zacks Rank #1(Strong Buy), Teledyne and Brady carry the same Zacks Rank as TASER.
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