Ahead Of The Bell: Smith & Wesson Shares Rise

NEW YORK (AP) — Smith & Wesson Holding Corp. shares rose sharply Thursday as the pistol maker's quarterly earnings beat analysts' estimates that were based on expectations that an "Obama-led frenzy" of demand for firearms would start dissolving.

In premarket trading, Smith & Wesson shares added 69 cents, or 12 percent, to $6.30.

Late Wednesday, the company said its fiscal first-profit climbed to 21 cents per share from 5 cents per share a year ago while revenue rose 30 percent to $102.2 million.

Analysts expected a smaller profit of 10 cents per share and $94.1 million in revenue, according to Thomson Reuters.

Springfield, Mass.-based Smith & Wesson also predicted greater-than-expected revenue for the fiscal second quarter.

Wall Street analysts had expected that the spike in firearms purchases that followed the election of President Obama would decline by the summer. That spike in demand stemmed from concerns that the new Democratic administration and Democratically controlled House and Senate would move to restrict gun ownership.