Smith & Wesson (SWHC) Stock Jumps in After-Hours Trading on Earnings Beat
NEW YORK (TheStreet) -- Shares of Smith & Wesson (SWHC) were gaining 9.3% to $14.26 after-hours Tuesday after the gun manufacturer beat analysts' estimates for earnings and revenue in the fiscal third quarter, and guided above estimates for the fiscal fourth quarter.
Smith & Wesson reported earnings of 20 cents a share for the third quarter, above analysts' estimates of 11 cents a share. Revenue fell 10.5% year over year to $130.6 million for the quarter, beating analysts' estimates of $123.32 million.
"Our third quarter results reflect the successful navigation of a normalizing firearm market following an earlier consumer surge in firearm purchases, combined with the ongoing focused execution of our long-term strategy," Smith & Wesson President and CEO James Debney said. "Sales in our firearm division exceeded our updated expectations, reflecting solid orders from distributors and key retailers at the start of our annual industry show season in January."
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The gun maker said it expects to report earnings of 29 cents to 30 cents and revenue of $162 million to $166 million for the fiscal fourth quarter. Analysts expect the company to report earnings of 25 cents a share and revenue of $159.43 million for the quarter.
TheStreet Ratings team rates SMITH & WESSON HOLDING CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SMITH & WESSON HOLDING CORP (SWHC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: SWHC Ratings Report