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TASER Gains on Mass Orders for Patented Smart Weapons

Zacks Equity Research

TASER International Inc. TASR announced that police and law-enforcement departments of various counties have placed numerous orders for its patented Smart Weapons. Following the news, the company’s shares rose 4.14% to close at $15.10 yesterday.

Notable among the orders placed are Bexar County Sheriff's Office, Arlington Police Department, Fort Lauderdale Police Department, Hollywood Police Department, and Texas Department of Public Safety, along with a few international orders.

Of the orders received in the fourth quarter of 2015, some have been dispatched in the quarter itself. Some others are in the process of being dispatched in the ongoing first quarter.

TASER develops, assembles and markets less-lethal, conducted energy weapons primarily for use in the law enforcement and corrections market. Its advanced Smart Weapon offers improved performance over other less-lethal force options used by law enforcement agencies. It can temporarily incapacitate virtually any individual regardless of pain tolerance, drug use, or body size – factors that cause other less-lethal options to have decreased effectiveness. The advanced Taser Smart Weapon also has a comparable or lower injury rate than other less-lethal weapons.

Demand for TASER’s products and services has seen a meteoric rise, particularly in the U.S., following increasing tensions between law-enforcement officials and the public.

The company has however witnessed ups and downs in its business given intensifying competition in the space and cyclical sales of its products. The company’s gun sales often rise in the wake of mass shootings or police shootings of civilians and then experience a slump as time passes. Gun sales had also soared after Obama announced tighter gun-control checks.

TASER’s third-quarter earnings plunged 78.6% year over year due to lower contributions from the TASER Weapon segment and higher operating expenses. However, the latest slew of orders is expected to bolster the Weapon segment, thereby resulting in higher earnings for the company as a whole.

Among TASER’s competitors, notable ones are Brady Corp. BRC and Allegion Plc ALLE.

Zacks Rank                                                                                                               

TASER International currently has a Zacks Rank #4 (Sell). A favorably-ranked stock in the protection-safety industry is Lakeland Industries Inc. LAKE with a Zacks Rank #2 (Buy).

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