Smith & Wesson 1Q Profit Surpasses Estimates

SPRINGFIELD, Mass. (AP) — Pistol maker Smith & Wesson Holding Corp.'s profit surged ahead of Wall Street expectations in the fiscal first quarter, as the company said sales of handguns and tactical rifles were strong.

Smith & Wesson also reported a large one-time gain related to its purchase of Universal Safety Response, a perimeter security company, and predicted greater-than-expected revenue in the fiscal second quarter.

For the quarter ended July 31, the company said its profit climbed to $12.6 million, or 21 cents per share, from $2.3 million, or 5 cents per share a year ago. The Universal Safety Response benefit added 5 cents per share to the company's profit.

Revenue rose 30 percent, to $102.2 million from $78.5 million.

Analysts expected a smaller profit of 10 cents per share and $94.1 million in revenue, according to Thomson Reuters. Analysts estimates usually exclude one-time items.

Smith & Wesson said firearms sales grew 30 percent to $99.6 million. Revenue from Universal Safety Response totaled $2.7 million in the 11 days after the sale closed. Pistol sales rose 15 percent, Walther sales grew 44 percent, sales of M&P15 tactical rifles jumped fourfold, and revolver sales slipped 4 percent.