Cowen analyst Cai Von Rmohr maintained his outperform rating while raising his price target to $30.50 from $24. The quarterly results were strong enough to suggest that fiscal 2022 will be a "decent year with continuing solid cash generation," Von Rmohr wrote.
Shares of Smith & Wesson jumped 13.6% Friday morning to $22.62 per share. The stock is up about 20% over the past six weeks and 25% year-to-date.
On Thursday after the close, the company reported net sales of $322.9 million for the fiscal fourth quarter, a 67.3% year-over-year increase from $193 million. Analysts were expecting the company to report revenue of $260 million.
The Springfield, Massachusetts-based gun maker recorded a quarterly profit of $1.71 per share, nearly quadruple the 44 cents it reported a year ago and well ahead of FactSet's consensus estimate of $1.08 per share.
Smith & Wesson has plans for 12 new product introductions this fiscal year, which likely offset any "normalizing" in demand, according to Von Rmohr.
Cowen also raised its 2022 earnings per share estimate to $4.10 from $1.80 per share, thanks in part to a share count reduction of between 10% and 12%.
"Our employees more than doubled the prior year sales, passed a milestone of $1 billion in revenue, and by every financial and operating metric, have delivered the most successful year in the 169-year history of the company," CEO Mark Smith said.