Overview
Firearm manufacturer's fiscal Q3 net sales rose 17.1% yr/yr
Company achieved Q3 gross margin of 26.2%, up from last year
Adjusted EPS for fiscal Q3 was $0.08
Outlook
Smith & Wesson expects Q4 sales to rise 10-12% over last year's Q4
Result Drivers
HANDGUN PERFORMANCE - Co reported exceptional handgun results with unit shipments up 28% in sporting goods channel despite a 2.2% decline in NICS
INVENTORY MANAGEMENT - Co focused on driving inventory levels down over the past year, now increasing production to meet demand, expected to positively impact margins
BRAND AND PRODUCT STRENGTH - Co attributed growth and market share gains to brand strength, product assortment, and new offerings in a stable market
Company press release: ID:nNFC75WWzv
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $135.70 mln | $125.59 mln (2 Analysts) |
Q3 Adjusted EPS | Beat | $0.08 | $0.05 (1 Analyst) |
Q3 EPS | $0.08 | ||
Q3 Adjusted Net Income | $3.60 mln | ||
Q3 Net Income | $3.80 mln | ||
Q3 Gross Margin | 26.20% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Smith & Wesson Brands Inc is $13.50, about 12.4% above its March 4 closing price of $12.01
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 38 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)