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TASER (TASR) Beats on Q4 Earnings and Revenue Estimates

Zacks Equity Research

TASER International Inc.’s TASR fourth-quarter 2016 earnings came in at 12 cents per share, beating the Zacks Consensus Estimate of 11 cents by 9.1%. This Scottsdale, AZ-based company’s earnings also improved 33.3% year over year. The upside was mainly driven by higher gross profit as well as operating income.

Full-year 2016 earnings were 32 cents per share, in line with the Zacks Consensus Estimate. However, the figure declined 11.1% year over year.
 

Total Revenue

In the quarter, the company generated revenues of $82.1 million, beating the Zacks Consensus Estimate of $71 million by 15.6%. The reported number also jumped 46.5% year over year. The upside can be attributed to higher sales from both the TASER Weapon as well as Axon segments.

Revenues from the TASER Weapons segment climbed 24.9% year over year to $58.3 million.

AXON segment revenues surged 153.8% to $23.7 million. Segment bookings increased 26.1% to $72.5 million as of Dec 31, 2016, from $57.5 million in the preceding quarter. Bookings also surged 62.3% year over year in the quarter.

Revenues were $268.2 million in 2016, up 35.6% year over year and also surpassed the Consensus estimate of $257.3 million by 4.2%.

Highlights of the Quarter

The company’s gross margin contracted 540 basis points year over year to 60.6% from 66% a year ago.

Total operating expenses increased 41.7% year over year to $40.4 million. The increase was primarily driven by higher sales, general and administrative expenses (up 40.7%), and research and development expenses (up 45.2%).

TASER International, Inc. Price, Consensus and EPS Surprise

 

TASER International, Inc. Price, Consensus and EPS Surprise | TASER International, Inc. Quote

Financials

The company had cash and cash equivalents of $40.7 million as of Dec 31, 2016, compared with $59.5 million as of Dec 31, 2015. Net cash from operating activities was $17.9 million in 2016 compared with $46.4 million in the year-ago period. Free cash flow was $6.0 million versus $27.3 million a year ago.

Zacks Rank

TASER International presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Brady Corp. BRC reported second-quarter fiscal 2017 earnings of 40 cents per share, beating the Zacks Consensus Estimate of 34 cents by 17.7%.

Digimarc Corporation DMRC reported fourth-quarter 2016 loss of 57 cents per share, narrower than the Zacks Consensus Estimate of 60 cents.

An Upcoming Peer Release

Alarm.Com Holdings, Inc. ALRM will release fourth-quarter 2016 results on Mar 15. In the last quarter, the company registered a positive earnings surprise of 60.00%.

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