Smith & Wesson Sales Show Gun Buying in Decline:

NEW YORK (TheStreet) -- More stringent gun laws may finally be having their intended effect. And that's bad news for Smith & Wesson  (SWHC) investors.

$SWHC party has run...1 of my most DD best trades last 3-4yrs ...7min to un-halted GOING DOWN!!!!!

? Robert K. (@cameltrader50) Jun. 19 at 04:28 PM

The stock fell 10% after management guided to a sales decline of between 21% and 24% from the same period a year ago. Sentiment declined to 69% bullish.

Management anticipates sales to come in between $130 million and $135 million. That's less than the $139.8 million consensus had expected.

Management said GAAP EPS for the current quarter should fall between 23 cents and 25 cents. The top end of that range still fell three cents short of the consensus estimate.

Management expects sales for fiscal 2015 to fall between $585 and $600 million. GAAP EPS should come in between $1.30 and $1.40. Consensus had anticipated sales of $1.45 EPS on sales of $621.85 million.

Gun run may be done. $SWHC outlook shows end of firearm frenzy. Buzz video. $RGR $DKS $CAB

? Paul La Monica (@lamonicabuzz) Jun. 20 at 11:24 AM

Aside from guidance, the current quarter was not terrible. The company said sales declined 4.6% to $170.4 million. However, excluding a product that is no longer sold, sales only declined 1.5%. And that number beat expectations. Consensus had called for $160.61 million in sales. Smith & Wesson reported earnings per diluted share of $0.44 for the quarter.

If you liked this article you might like

7 Bargain-Basement Stocks That Could Rebound in 2017

This Year's Jewels in Last Year's Junk

Gun Stocks Are a Risky Play in 2017 -- Here's Why

Jim Cramer's 'Mad Money' Recap: Don't Worry About a Little Market Detour

'Mad Money' Lightning Round: Wynn Resorts vs. MGM, Ford vs. General Motors