Why TASER International's Shares Popped

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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