Smith & Wesson shoots up on strong earnings
A positive outlook helps give the stock a much-needed bump after several rough weeks. Shares were up nearly 18%.
By Christopher Freeburn
On Tuesday, gun-maker Smith & Wesson (SWHC) reported strong third-quarter results and issued better-than-expected earnings guidance for current fiscal quarter. The news sent SWHC surging; shares were up nearly 18 percent in afternoon trading.
Smith & Wesson posted earnings of 36 cents per share for the third quarter, which beat Wall Street analyst estimates for 29 cents. Meanwhile, revenues came in at 145.9 million to top the consensus expectation for $142.5 million.
Meanwhile, SWHC's expectations for fiscal Q4 included earnings from continuing operations of between 37 and 40 cents per share to beat the Street's guess of 35 cents, and fourth-quarter revenue of between $159 million and $164 million; most of the range falls well above the $164.8 million that analysts anticipate.
The result was a much-needed bump following a rough month-plus for SWHC shares. After peaking at multi-year highs around $15 per share in early January, shares had dropped off by as much as 15 percent. Wednesday's gains still put SWHC well under the peak at just $14 per share, but do put the stock in the black for 2014.
Competitor Sturm, Ruger & Co. (RGR) saw its shares gain nearly 3 percent as of this writing.
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