Stock Market Watch

Smith & Wesson’s Preliminary Q4 Results Top Estimates (SWHC)

by · Published · Updated


Gunmaker Smith & Wesson Holding Corporation (NASDAQ: SWHC) said on Thursday that it expects fourth-quarter earnings and revenue to beat estimates.

Recent incidents of mass shootings in the U.S. have reignited the debate over whether the lawmakers should enact more stringent gun laws. The raging debate has also pressed President Obama to push for stronger legislation against gun violence. As a result, gun enthusiasts have started to buy firearms in hordes, fearing possible restrictions on gun purchase, in the future. The demand for guns has soared in recent quarters.

For the fiscal fourth quarter ended April 30, Smith & Wesson is anticipating adjusted earnings of 44 cents a share compared to 27 cents a share, in the same quarter of last year. Sales are expected to soar 38% to $179 million.

Analysts polled by Thomson Reuters were expecting earnings of 40 cents a share. Revenue was expected at $170.72 million.

The firearms seller also announced that the Board of Directors approved a share buyback plan of up to $100 million.

Commenting over the share buyback plan, Chief Executive, James Debney said, “We believe that investing in our own company is presently one of our greatest opportunities.”  Debney added that the decision will allow the company to be “strategically opportunistic.”

Shares gained 4.73% in afterhours trading to $9.74 after climbing 2.31% in regular trading. Through Thursday close, the stock gained 10% from the start of this year.

 

More Posts by this author

edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...