After yesterday's market close, the Springfield, MA-based firearms manufacturer posted adjusted earnings of 59 cents per share, topping analysts' estimates of 39 cents per share.
Revenue spiked 61.5% to $210.8 million year-over-year and surpassed Wall Street's expectations of $174.93 million.
Cowen said positive earnings news could continue into the current quarter. A recent report showed that adjusted numbers tracking FBI background checks, which are a rough gauge of sales, increased 16% last month, the firm's analysts said, according to the Wall Street Journal.
"The overall gun-market vigor reflects another month of 'surge' demand driven by fears of regulatory initiatives and potential terrorist attacks," Cowen added.
For the current quarter, Smith & Wesson expects adjusted earnings per share between 51 cents and 53 cents on revenue of $210 million to $215 million, higher than analysts' projections.
Analysts are looking for earnings of 47 cents per share on revenue of $195 million.
"The combined strength of our firearms and accessories businesses delivered an exceptional performance, driven by healthy consumer demand across our growing portfolio of firearm and outdoor lifestyle offerings," CEO James Debney said in a statement.
About 8.51 million of the company's shares were traded by this afternoon compared to its average volume of 1.75 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks rated.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SWHCSWHC data by YCharts