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We expect TASER International Inc. (TASR - Snapshot Report) to beat expectations when it reports first-quarter 2014 financial results on Apr 30. Last quarter, the company beat expectations with an impressive earnings beat of 140.0%. In fact, TASER delivered positive earnings surprises in the last four quarters with an average beat of 59.05%. We expect the trend to continue in the first quarter as well.

Why a Likely Positive Surprise?

Our proven model shows that TASER International is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP: Expected Surprise Prediction or Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. TASER International has a Zacks ESP of +25.00%. This is a significant and leading indicator of a likely positive earnings surprise for the shares.

Zacks Rank: We note that stocks with Zacks Ranks #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of TASER International’s Zacks Rank #2 (Buy) and +25.00% ESP makes us confident of a possible earnings beat on Apr 30.

What is Driving the Better-than-Expected Earnings?

TASER manufactures and sales conducted electrical weapons (CEWs) for use in law enforcement, military, federal, private security, and personal defense markets worldwide. In addition, the company provides video products like AXON body-worn video cameras that utilize advanced audio-video record and capture devices worn by first responders to record video of critical incidents from the visual perspective of the officer. EVIDENCE.com is a secured digital evidence management solution by which an agency can access its data safely.

Earlier TASER revealed that it got several new orders for its CEWs and next generation Smart Weapons. The company had already delivered most of the orders in the fourth quarter of 2013 and was expected to complete the rest of the deliveries in the first quarter of 2014.

In this past quarter, the company also received numerous orders for its AXON body-worn video cameras and EVIDENCE.com solutions for its EVIDENCE.com segment. These orders came from both domestic and international customers.

The company expects to generate significant revenues in the first half of 2014 on the back of strong orders.

Another Stock to Consider

TASER International is not the only firm looking up this earnings season. We also see a likely earnings beat coming from Wesco Aircraft Holdings, Inc. (WAIR - Snapshot Report). Wesco Aircraft has an earnings ESP of +3.03% and a Zacks Rank #3 (Hold).

Other Releases

Northrop Grumman Corporation (NOC - Analyst Report) reported first quarter adjusted earnings of $2.40 per share, surpassing the Zacks Consensus Estimate of $2.15 by 11.6%. The stock currently holds a Zacks Rank #2 (Buy).

Lockheed Martin Corporation (LMT - Analyst Report) posted impressive first quarter earnings of $2.87 per share, comfortably surpassing the Zacks Consensus Estimate of $2.52 by 13.9%. The stock currently holds a Zacks Rank #2 (Buy).

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