NEW YORK (TheStreet) -- Shares of Smith & Wesson (SWHC) were gaining by 4.1% to $16.87 in after-hours on Thursday, after the firearms company beat analysts' estimates for earnings and revenue in the fiscal 2016 first quarter.
Smith & Wesson reported earnings of 32 cents a share for the fiscal first quarter, beating analysts' estimates of 22 cents a share for the period. Revenue grew by 12.2% year over year to $147.76 million for the quarter, above analysts' estimates of $142.76 million.
"Our first quarter results exceeded our expectations for sales and net income in both our firearms and accessories divisions," CEO Hames Debney said in a statement. "Higher revenue in our firearms division was driven by strong orders for our M&P 15 Sport rifles, our Thompson/Center Venture bolt-action rifles and our M&P Shield polymer pistols."
The company said it expects to report earnings of 16 cents to 18 cents a share and revenue of $135 million to $140 million for the fiscal 2016 second quarter. Analysts expect the company to report earnings of 15 cents a share and revenue of $129.58 million for the quarter.
Separately, TheStreet Ratings team rates SMITH & WESSON HOLDING CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SMITH & WESSON HOLDING CORP (SWHC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its 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
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