Taser shares plunged to their lowest price in more than a year Thursday after the stun-gun maker's first-quarter results fell short of analysts' expectations.
Taser International Inc.'s profit doubled to 2 cents per share, while revenue jumped 47 percent, to $22.5 million. However, analysts expected an average of 5 cents per share and $26 million in revenue, according to Thomson Financial.
Shares sank $1.89, or 20.1percent, to $7.53 Thursday. Earlier, the stock fell to $7.30, its lowest price since September 2006.
In e-mails to the Associated Press, Merriman Curhan Ford analyst Eric Wold said analysts were "too aggressive" in their expectations for Taser. He wrote that he does not think economic issues cut into Taser's orders, as most municipalities approved their budgets before June of 2007.
But economic weakness may affect budgets being completed for the fiscal year beginning in June 2008, he said.
Wold thinks investors will be cautious about the Scottsdale, Ariz., company for now, but he said sales of Taser's key products, including the X26, will keep growing, and new products will add to its profits in fiscal 2009.
Terms & Conditions
RSS Headlines
Fool UK