Expect A Strong Quarter From Taser, But Video Competition Concerns Linger

Mattson noted Taser "surprised" investors in its third-quarter report when the company reported $53 million in weapons sales, marking a 33 percent growth, which is "unnatural for a mature business." However, the analyst suggested that if the strong growth was attributed to a new market, then the analyst would view it more favorably — in reality, the surge was due to a change in the company's go-to-market strategy.

A Look Ahead

Looking forward to the fourth quarter, Mattson is estimating Taser will report a 20 percent growth rate in weapons sales. The company's Video segment is seeing heightened competition from peers like Digital Ally, Inc. DGLY, which is winning smaller contracts where clients are more sensitive to price.

"Though we still expect TASR will be the number one player in the market, we believe the competition is levelling the playing field quickly," Mattson argued.

Finally, Mattson stated he will be paying close attention in the earnings report to any updates on the international market. Taser has already won a handful of international contracts such as an order to supply 22,000 Axon cameras to the police department in London. However, the company's "broader traction has yet to be realized."