TASER (TASR) Q3 Earnings: Is a Disappointment in Store?

TASER International Inc. TASR will release third-quarter 2016 financial results on Nov 9, after the market closes.

Last quarter, the company posted a positive earnings surprise of 133.33%. In the trailing four quarters, the company has recorded an average positive surprise of 73.96%. Let’s see how things are shaping up for this announcement.

Factors to Consider

TASER International’s AXON body-worn video cameras are in demand with the company winning orders from domestic and international police departments during the third quarter. These hot-selling body cameras also come with a cloud storage service, EVIDENCE.com, which allows hassle-free storage.

Meanwhile, the company continues to invest in research and development (R&D) to maintain its expertise in emerging technologies such as wearables, mobile and cloud. Axon Body 2 is part of the growing Axon platform that connects cloud, mobile and wearable technologies. The deployment of body cameras is aimed to render police agencies a distinct transparency.

Earnings Whispers

Our proven model does not conclusively show that TASER International is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Zacks ESP: TASER International has an Earnings ESP of +20.00%. This is because the Most Accurate estimate stands at 6 cents, while the Zacks Consensus Estimate is pegged lower at 5 cents.

Please check Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Zacks Rank: Despite having a positive ESP, TASER International carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement.

Positive Surprise by Peers

Here are some stocks in the protection and safety industry that have surpassed expectations this earnings season:

MSA Safety Incorporated MSA has surpassed third-quarter earnings expectations by 12.5%. The stock currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Net 1 Ueps Technologies Inc. UEPS currently carries a Zacks Rank #3. It has beaten third-quarter earnings estimates by 34.21%.

Fortune Brands Home & Security, Inc. FBHS, another Zacks Rank #3, has exceeded third-quarter earnings projections by 2.56%.

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