Why TASER International's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of TASER International jumped 12% today after the company reported better than expected quarterly earnings.
So what: Third quarter sales rose 22% to $35.2 million as net income rose 40% to $5.1 million, or $0.10 per share. Analysts were only expecting $32.6 million in revenue and $0.08 per share in earnings.
Now what: Profit was up in large part because gross margin increased to 62.8% from 58.4% a year ago. This is great news, and momentum should continue -- the company's wearable camera orders are picking up the pace. The stock isn't cheap at 48 times forward earnings, but I think there's a lot of upside as law enforcement agencies adopt the company's products.
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The article Why TASER International's Shares Popped originally appeared on Fool.com.
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