Smith & Wesson Crushes Q3, Says More Production Is Ahead
Merchants of fear.
Smith & Wesson (SWHC) soundly beat third-quarter expectations and raised its guidance again Thursday, and the gun maker plans to boost production of “key products” this quarter as fears of future gun regulations lift demand.
Adjusted earnings per share nearly tripled to 59 cents a share, 20 cents higher than consensus views. Sales surged 61.5% to$210.8 million, breezing past forecasts for $174.93 million. Smith & Wesson now expects full-year EPS of $1.68-$1.70, well above analysts’ outlookof $1.42, and above its upwardly revised guidance of $1.36-$1.41 given in January. Shares surged 7% after-hours in the stock market today, breaking out of a cup base that had begun to form a handle and which had a 26.64 buy point. Shares of smaller rival Sturm Ruger (RGR) climbed 1.8% after hours.
“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,” Smith & Wesson CEOJames Debney said in a statement. “Despite the fact that we entered our fourth quarter with lower inventories,” he added, “we are focused on increasing the production rates of our key products during the fourth quarter and we are therefore increasing our guidance for the full fiscal year.
” The results follow a series of mass shootings in the U.S., most notably inSan Bernardino, Calif., during the quarter, that have kept the debate on gun control in the headlines.
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