Sector Snap: Suppliers Of Law Enforcement Rise

NEW YORK (AP) — Shares of companies that sell guns, cameras and body armor to police jumped Tuesday on growing optimism that a newly signed $787 billion spending bill will boost sales and profits.

The American Recovery and Reinvestment Act of 2009 will direct to law enforcement agencies about $3.8 billion, much of which will be used to better equip law officers, Merriman Curhan Ford analyst Eric Wold said Tuesday in a client note.

Wold said gun maker Smith & Wesson Holding Corp. could see sales rise as much as $47 million to $147 million with a resulting boost in earnings per share of 16 cents to 51 cents.

The analyst estimated that the federal money could lift stun gun maker Taser International Inc.'s revenue by $79 million to $98 million and its earnings per share by 42 cents to 52 cents.

In both cases, Wold estimates that the spending bill's effect on the two companies' sales and earnings will come from approximately the end of this year to the end of next year.