Why Smith & Wesson (SWHC) Stock Is Plunging in After-Hours Trading Today

NEW YORK (TheStreet) -- Smith & Wesson  (SWHC)  plunged in after-hours trading Tuesday after the company reported mixed first-quarter earnings and issued full-year guidance that came up short of analysts' expectations.

The company reported diluted earnings per share from continuing operations of 26 cents, which edged the consensus estimate of 25 cents a share. EPS in the same quarter last year was 40 cents.

Revenue declined year-over-year to $131.87 million from $171.02 million. Analysts expected revenue of $133.93 million.

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Smith & Wesson expects full-year revenue in the range of $530 million to $540 million, while the consensus estimate calls for $593.78 million.

The stock was down 11.6% to $11.58 at 4:54 p.m.

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Separately, TheStreet Ratings team rates SMITH & WESSON HOLDING CORP as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SMITH & WESSON HOLDING CORP (SWHC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels, expanding profit margins and increase in stock price during the past year. We feel these 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

SWHC Chart SWHC data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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