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TASER International Inc.’s third-quarter 2016 earnings came in at 7 cents per share, beating the Zacks Consensus Estimate of 5 cents by 40%. This Scottsdale, AZ-based company’s earnings also improved 133.3% year over year. The upside was mainly driven by higher gross profit as well as operating income.
In the quarter, the company generated revenues of $71.9 million, beating the Zacks Consensus Estimate of $59 million by 21.9%. The reported number also increased 42.7% year over year. The upside can be attributed to higher sales from both TASER Weapon as well as Axon segments.
Revenues from the TASER Weapons segment jumped 34% year over year to $52.9 million.
AXON and EVIDENCE.com revenues surged 74.5% to $18.9 million. Segment bookings declined 20.2% to $57.5 million as of Sep 30, 2016, from $72 million in the preceding quarter, due to the $20.5 million LAPD booking in the second quarter that made for a tough sequential comparison. Bookings however surged 55.9% year over year in the quarter.
The company’s gross margin expanded 310 basis points year over year to 64.8% from 61.7% a year ago. This was driven by manufacturing efficiencies in the TASER Weapons segment as well as favorable mix impact related to the higher margin service revenue, which took up a larger proportion of the company’s total sales.
Sales, general and administrative expenses increased 57.9% year over year to $28.1 million, on account of higher headcount, expenses related to international expansion, professional/consulting fees, legal costs, and higher variable compensation.
Total operating expenses increased 45.6% year over year to $35.5 million.
Financials
The company had cash and cash equivalents of $50.6 million as of Sep 30, 2016, compared with $59.5 million as of Dec 31, 2015. Net cash from operating activities was $11.6 million in the quarter as against the equivalent figure of $19.3 million a year ago. Free cash flow was $10.1 million versus $14.1 million a year ago.
Brady Corp. (BRC - Free Report) will release its first-quarter fiscal 2017 results on Nov 16, 2016. Last quarter, the company posted a positive earnings surprise of 36.11%.
Alarm.Com Holdings, Inc. (ALRM - Free Report) will release third-quarter 2016 results on Nov 14. Last quarter, the company registered a positive earnings surprise of 30.00%.
Digimarc Corporation (DMRC - Free Report) reported third-quarter 2016 loss of 55 cents per share, narrower than the Zacks Consensus Estimate of 60 cents. The company’s third-quarter revenues of $5.6 million surpassed the Zacks Consensus Estimate of $5 million.
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TASER (TASR) Q3 Earnings & Revenues Beat; Expenses Rise
TASER International Inc.’s third-quarter 2016 earnings came in at 7 cents per share, beating the Zacks Consensus Estimate of 5 cents by 40%. This Scottsdale, AZ-based company’s earnings also improved 133.3% year over year. The upside was mainly driven by higher gross profit as well as operating income.
Total Revenue
In the quarter, the company generated revenues of $71.9 million, beating the Zacks Consensus Estimate of $59 million by 21.9%. The reported number also increased 42.7% year over year. The upside can be attributed to higher sales from both TASER Weapon as well as Axon segments.
Revenues from the TASER Weapons segment jumped 34% year over year to $52.9 million.
AXON and EVIDENCE.com revenues surged 74.5% to $18.9 million. Segment bookings declined 20.2% to $57.5 million as of Sep 30, 2016, from $72 million in the preceding quarter, due to the $20.5 million LAPD booking in the second quarter that made for a tough sequential comparison. Bookings however surged 55.9% year over year in the quarter.
TASER INTL INC Price, Consensus and EPS Surprise
TASER INTL INC Price, Consensus and EPS Surprise | TASER INTL INC Quote
Highlights of the Quarter
The company’s gross margin expanded 310 basis points year over year to 64.8% from 61.7% a year ago. This was driven by manufacturing efficiencies in the TASER Weapons segment as well as favorable mix impact related to the higher margin service revenue, which took up a larger proportion of the company’s total sales.
Sales, general and administrative expenses increased 57.9% year over year to $28.1 million, on account of higher headcount, expenses related to international expansion, professional/consulting fees, legal costs, and higher variable compensation.
Total operating expenses increased 45.6% year over year to $35.5 million.
Financials
The company had cash and cash equivalents of $50.6 million as of Sep 30, 2016, compared with $59.5 million as of Dec 31, 2015. Net cash from operating activities was $11.6 million in the quarter as against the equivalent figure of $19.3 million a year ago. Free cash flow was $10.1 million versus $14.1 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.
Update on Peer Releases
Brady Corp. (BRC - Free Report) will release its first-quarter fiscal 2017 results on Nov 16, 2016. Last quarter, the company posted a positive earnings surprise of 36.11%.
Alarm.Com Holdings, Inc. (ALRM - Free Report) will release third-quarter 2016 results on Nov 14. Last quarter, the company registered a positive earnings surprise of 30.00%.
Digimarc Corporation (DMRC - Free Report) reported third-quarter 2016 loss of 55 cents per share, narrower than the Zacks Consensus Estimate of 60 cents. The company’s third-quarter revenues of $5.6 million surpassed the Zacks Consensus Estimate of $5 million.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>