Smith & Wesson Brands (SWBI) beat Wall Street's fiscal first-quarter earnings expectations as firearm sales rose to record levels.
Smith & Wesson Brands reported net income of $48.4 million, or 86 cents a share, up from a loss of $2.1 million, or 4 cents a share, a year ago. Analysts polled by FactSet had called for income of 39 cents a share.
Shares of the Springfield, Mass. company were climbing 2.6% to $19.30.
Sales totaled $277.9 million, up from $123.7 million, and beat the consensus estimate. In the company's firearms unit, sales more than doubled to a record total $230 million.
"I'm very pleased to report that despite the enormous challenges presented by the pandemic, our team has delivered a record-breaking quarter in firearm sales," Mark Smith, president and CEO, said during the company's earnings call.
Last week, Smith & Wesson spun off American Outdoor Brands, which sells tools and accessories for the outdoors.
Background checks for gun purchases surged past 3.11 million in August, according to the Federal Bureau of Investigation, as Americans respond to the coronavirus pandemic and unrest in several cities.
The number of background checks in July totaled 3.64 million and June saw 3.93 million background checks, the biggest tally since the FBI started keeping track in 1998.
FBI background checks are conducted every time someone tries to buy a gun, or guns, from a federally licensed dealer.
There were roughly 1.8 million guns sold in August 2020, Fox Business reported, citing statistics from Small Arms Analytics and Forecasting, which compiles and analyzes the raw data obtained from the FBI’s National Instant Criminal Background Check System.
Smith & Wesson has seen consumer interest in guns increase of late, with executives telling analysts in June that fears over future potential gun-control regulation and concerns over personal protection were helping to drive demand, the Wall Street Journal reported.