TASER International Inc. 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.
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 - Free Report) 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 - Free Report) currently carries a Zacks Rank #3. It has beaten third-quarter earnings estimates by 34.21%.
Fortune Brands Home & Security, Inc. (FBHS - Free Report) , another Zacks Rank #3, has exceeded third-quarter earnings projections by 2.56%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>