What: Shares of TASER International, Inc. (NASDAQ:AAXN) popped 22.5% in May after the company reported strong first-quarter earnings.
So what: Revenue jumped 24.1% in the quarter to $55.5 million and net income dropped in half to $3.5 million, or $0.06 per share. But the big bigger news was in Axon body cameras, where bookings more than doubled to $52.1 million and contracted revenue rose to $202.3 million. Taser has been investing millions in product development and sales for the Axon line, which is paying off with growing bookings around the world.
Now what: The body camera movement is starting to take hold and Taser's addition of subscriptions to Evidence.com is making it easier for police forces to use the product. And that adds a long-term revenue source that should be very high margin. Investors should expect net income to stay around breakeven as the company invests in growth, but long-term, the bottom line is set up for growth. I see a bright future ahead for Taser given the growth in body cameras, and as long as that's the case, this stock looks like a great investment.
Travis Hoium owns shares of TASER International. The Motley Fool recommends TASER International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.