Smith & Wesson Beats Q1 Estimates, Shares Surge

Shares of

surged over 7 percent in after-hours trading after the company reported upbeat results for its fiscal first quarter. The Springfield, Massachusetts-based company posted a quarterly profit of $14.4 million, or $0.26 per share, versus a year-ago profit of $14.56 million, or $0.26 per share. Its non-GAAP net income climbed to $0.32 per share from $0.27 per share. Its revenue gained 12.1 percent year-over-year to $147.8 million from $131.9 million. However, analysts were projecting a profit of $0.23 per share on revenue of $142.9 million. The average estimate among 12 Estimize users was for earnings of $0.23 per share and revenue of $145.37 million. Firearms division net sales rose 1.9 percent year-over-year to $134.4 million, while Accessories division net sales climbed 29.9 percent to $13.3 million. Its gross margin for the quarter widened to 39.8 percent from 37.2 percent. James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, said, "Our first quarter results exceeded our expectations for sales and net income in both our firearms and accessories divisions. Higher revenue in our firearms division was driven by strong orders for our M&P®15 Sport™ rifles, our Thompson/Center Venture™ bolt-action rifles and our M&P Shield™ polymer pistols. Our accessories division, which was established less than one year ago, also continued to deliver excellent results, with revenue and gross margins that were positive from the year-ago quarter." For the fiscal year ending April 30, 2016, Smith & Wesson now expects adjusted earnings of $1.14 to $1.19 per share on sales of $610 million to $620 million. For the current quarter, Smith & Wesson projects adjusted earnings of $0.19 to $0.21 per share, on revenue of $135 million to $140 million. Smith & Wesson shares rose 7.15 percent to $17.38 in the after-hours trading session.