The company reported a profit of $20.8 million, or 36 cents a share, compared to $14.6 million, or 22 cents a share, in the same period a year earlier. Earnings from continuing operations increased 14.6% to $20.1 million, or 35 cents a share.
Revenue rose 7.1% to $145.9 million. Gross margin widened to 40.2% versus 36.6% a year earlier.
Analysts expected per-share earnings of 29 cents on revenue of $142.7 million. Smith & Wesson forecasted earnings from continuing operations of 28 to 30 cents a share and between $140 million and $145 million in revenue.
Gun makers like Smith & Wesson widely reported a surge in sales last year, as the threat of additional regulations drove buyers to purchase firearms. In recent months, analysts have warned that demand will likely flatten.
Smith & Wesson said third-quarter revenue got a big lift from handgun sales, which grew 29.9% year-over-year amid demand for the company’s M&P pistols. CEO James Debney called the result “a solid result when we consider that the year-ago quarter reflected a surge in consumer demand.”
Excluding Walther products in the year-ago period, total sales were up 16.7%. Smith & Wesson phased out a distribution agreement with the German gun manufacturer last year.
Also on Tuesday, Smith & Wesson raised its full-year guidance to between $615 million and $620 million in sales and earnings from continuing operations of $1.39 to $1.42 a share. The Springfield, Mass.-based company expects to book per-share earnings of 37 to 40 cents and revenue of $159 million to $164 million.
In January, Smith & Wesson announced it will no longer sell many of its handguns in California, where a new law mandates the use of microstamping technology. The company said sales of California-compliant guns, including revolvers and handguns that were launched prior to the law taking effect, will more than offset any lost sales.
Shares of Smith & Wesson jumped 6.6% to $12.58 in after-hours trading. Through Tuesday’s close, the stock was down 12.5% since the start of the year.
Hat Tip: Fox Business
Diamond K. Brass a nationally recognized Once Fired Brass Company based in AZ and Colorado has added Projectiles to their caliber list of reloading supplies.
They recently expanded their facilities at 7363 E Adobe DR Suite 101 Scottsdale, Arizona 85255 and they can be reached at 855-357-3030. Feel free to visit their website.
How to mod a Nerf gun into a lethal weapon in 3 easy steps.
Warning: This Nerf gun mod can result in personal harm.
This is an illegal Nerf gun hack. Do not attempt this. This video is for entertainment purposes only.
Just leave your Nerf blaster the way it is.
Out of all the nerf gun mods you’ve seen, this is the craziest. Guaranteed.
Gav and Dan slow down time by over one thousand times to show you how bullets look when fired from an underwater gun.
Hat Tip: Yahoo