By late morning, shares had exploded 16.5% to $13.75.
In its third quarter ended January, the Springfield, Mass.-based business recorded net income of 35 cents a share, 6 cents higher than analysts surveyed by Thomson Reuters had forecast.
Revenue of $145.9 million was a 7.1% year-over-year increase and beat consensus by $3.2 million.
The company raised its fiscal 2014 guidance to revenue between $615 million and $620 million. Per-share earnings are expected in the range of $1.39 to $1.42.
Analysts had predicted per-share earnings of $1.37 and total sales of $619.63 million.
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TheStreet Ratings team rates SMITH & WESSON HOLDING CORP as a Buy with a ratings score of A-. The 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, solid stock price performance, impressive record of earnings per share growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."