Taser shares hit two-year high on strong earnings
Taser soared to a two-year high in trading Friday after third-quarter results blew past Wall Street expectations by more than tripling its profits.
Taser said that it sold more of its stun guns and cameras for police use and related services during the period, sending its revenue up 18 percent to $28.8 million. It reported a net income of $3.7 million, or 7 cents per share, for the quarter that ended Sept. 30. That's compared with $1.1 million, or 2 cents per share, earned in the same quarter last year.
Analysts polled by FactSet were expecting the company to earn 4 cents per share on revenue of $25.6 million.
Gross margins also jumped from 53.7 percent last year during the same period, to 58.5 percent this year. The company cited the increase in sales, improvements to its operations and more efficient manufacturing.
CEO Rick Smith said that the company has increased its investment in the company to help build its business and said the company remains well-positioned to deliver profitable growth in the future.
"We will look to tie this reinvestment directly with the sales and booking trends that we see in the future," Smith said.
Shares of Taser International Inc. jumped 21 percent, or $1.37, to $7.76 in afternoon trading. If the stock closes at this level, its price will be up roughly 90 percent since this spring.