- Reuters/John Sommers II
Smith & Wesson on Thursday reported fourth-quarter profits and revenues that topped analysts’ forecasts, as demand for its firearms continued to strengthen.
The gunmaker posted $0.63 in adjusted earnings per share (EPS) for its fiscal fourth quarter, and revenues totaling $221 million.
Analysts had estimated adjusted EPS of $0.54 and revenues totaling $214.6 million, according to Bloomberg.
Its shares were up by as much as 9% in premarket trading on Friday.
Net income for the quarter rose to $35.6 million from almost $22 million a year ago. The company’s outlook for the full year was also better than expected.
It sees full-year sales between $740 million and $760 million, beating the forecast for $732.3 million. Adjusted EPS is forecast at $1.83 to $1.93, with $1.66 expected.
Smith & Wesson CEO James Debney said that the company’s firearms division, where sales jumped 22% year-over-year, benefited from strong consumer demand as it introduced new products.
Investors anticipated that calls for tougher gun-control laws would increase current demand for firearms and boost the company’s sales.
“This guidance does not take into account any surge – any potential spike in consumer demand as a result of any event,” said CFO Jeffrey Buchanan during the earnings call.
“It’s a little hard to tell what any long-term impact on demand is by two or three days of activity.”
US President Barack Obama said that the Orlando shooting was a reminder of how easy it was for mass shooters to obtain guns. Hillary Clinton, the presumptive Democratic presidential nominee, also called for more gun-control measures.
Smith & Wesson shares have fallen about 1% year-to-date. The stock rallied sharply through April and then pared the gains after the FBI reported lower than expected permit activity in March.