Smith & Wesson Brands Inc SWBI shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected financial results.
Smith & Wesson said fiscal first-quarter revenue decreased 69.3% year-over-year to $84.4 million, which missed average analyst estimates of $129.78 million, according to Benzinga Pro. The company reported quarterly earnings of 11 cents per share, which missed average analyst estimates of 34 cents per share.
Gross margins fell to 37.3% during the first quarter compared to 47.3% in the prior year's quarter.
"As expected, our first quarter results reflected a return to a normal demand pattern at the retail counter for firearms combined with temporary headwinds from inventory corrections within the channel," said Mark Smith, president, and CEO of Smith & Wesson.
"With a pickup in order rates over the past few weeks and a significant drop in unit inventory levels within the channel, we believe the inventory correction should now largely be in the rearview mirror," Smith added.
The company's board also authorized a 10 cents per share quarterly dividend, which will be paid on Oct. 6 to stockholders of record on Sept. 22.
See Also: After-Hours Alert: Why DocuSign Stock Is Soaring
SWBI Price Action: Smith & Wesson is making new 52-week lows in after-hours Thursday.
The stock was down 7.82% in after-hours at $12.38 at the time of publication.
Photo: tung256 from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.