Smith & Wesson Brands (NASDAQ:SWBI) Issues Earnings Results, Beats Estimates By $0.03 EPS

Smith & Wesson Brands (NASDAQ:SWBI) released its quarterly earnings data on Thursday. The company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of $0.05 by $0.03, FiscalAI reports. The firm had revenue of $135.71 million for the quarter, compared to analysts’ expectations of $125.59 million. Smith & Wesson Brands had a return on equity of 2.34% and a net margin of 1.89%.The firm’s quarterly revenue was up 17.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.02 earnings per share.

Here are the key takeaways from Smith & Wesson Brands’ conference call:

• Strong Q3 financial results — Net sales rose ~17% to $135.7M, adjusted EBITDA was $16.8M (up ~21%), adjusted EPS was $0.08, and operating cash flow improved by roughly $30M year-over-year.
• Handgun momentum and market-share gains — Handgun unit shipments into sporting channels were up 28% while adjusted NICS fell 2.2%, new products made up 44% of handgun shipments, and ASPs rose ~5.2% to $419 (supported by a modest ~2–3% price increase).
• Long-gun weakness — Long-gun shipments into the sporting channel fell ~25% and ASPs declined ~11% year-over-year, largely versus a prior-year period that included channel fill of higher-priced Model 1854 introductions.
• Balance-sheet improvement and capital deployment — Debt fell to $75M at quarter-end (and to $55M after a subsequent $20M repayment), inventory declined to $175M, cash from operations was strong, and the board authorized a $0.13 quarterly dividend.
• Confident outlook for Q4 — Management expects Q4 sales to grow 10–12% year-over-year, anticipates several percentage points of gross-margin improvement, ongoing healthy cash generation, and modestly higher operating expenses tied to R&D and compensation.

Smith & Wesson Brands Price Performance

SWBI stock opened at $11.79 on Friday. The company has a current ratio of 4.98, a quick ratio of 1.58 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $524.54 million, a PE ratio of 62.06 and a beta of 1.04. Smith & Wesson Brands has a 12-month low of $7.73 and a 12-month high of $12.15. The business’s fifty day moving average price is $11.13 and its 200 day moving average price is $9.97.

Institutional Trading of Smith & Wesson Brands

A number of institutional investors and hedge funds have recently bought and sold shares of SWBI. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Smith & Wesson Brands in the 4th quarter valued at $30,000. Tower Research Capital LLC TRC increased its holdings in Smith & Wesson Brands by 205.9% in the second quarter. Tower Research Capital LLC TRC now owns 6,240 shares of the company’s stock valued at $54,000 after buying an additional 4,200 shares during the last quarter. Rafferty Asset Management LLC raised its stake in Smith & Wesson Brands by 12.2% in the second quarter. Rafferty Asset Management LLC now owns 11,403 shares of the company’s stock valued at $99,000 after buying an additional 1,237 shares in the last quarter. Ameriprise Financial Inc. purchased a new stake in Smith & Wesson Brands during the 2nd quarter worth about $101,000. Finally, Corient Private Wealth LLC acquired a new position in shares of Smith & Wesson Brands during the 2nd quarter worth about $104,000. 59.33% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

SWBI has been the topic of several recent analyst reports. Wall Street Zen lowered Smith & Wesson Brands from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Smith & Wesson Brands in a research report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $11.00.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.