The rising tensions in police/community relations across the country—from the fatal shootings of Philandro Castile and Alton Sterling to the killings of police officers in Dallas and Baton Rouge—have been good for business at Taser. The company, best known for its stun guns widely used by law enforcement, also dominates the police body camera market.
• Demand has been rising for these products and Taser has been winning orders in this quarter from the Montreal police, West Midlands Police in the U.K., and the Jacksonville, Florida, sheriff’s office. Contracts for its Axon body cameras have been placed by major cities such as Los Angeles, Chicago, and London.
• Yet Taser is facing some challenges too— there is more competition than ever in the industry and gun sales often slump after initially rising in the wake of mass shootings or other violent incidents.
• While sales are expected to improve 14% to $53.3 million, earnings are anticipated to slip 69.7% year-over-year, according to the Zacks Consensus Estimate.
• Earnings per share (EPS) are expected to be $0.24 for the year, up from a prior forecast of $0.23, according to stock analysts at Dougherty & Co.MB