Smith & Wesson Crushes Expectations

Smith & Wesson Holding Corp SWHC announced its Q1 results after Thrusday's close.

EPS of $0.57 and revenue of $207 million (up 40.1 percent year-over-year) beat the Street’s consensus by $0.04 and $8.84 million, respectively.

For the second quarter, management expects EPS in the $0.53 to $0.57 range, well above estimates of $0.35. On the revenue front, the team envisions sales of $220 million to $230 million, once again considerably higher than the analyst forecast of $165.4 million.

President and CEO James Debney said, “We are very pleased with our first quarter results, which exceeded our financial guidance. We believe that higher revenue was driven by strong consumer demand as reflected in adjusted background checks from the National Instant Criminal Background Check System (NICS) as well as our own market share gains.

"During the quarter, we announced the acquisition of Taylor Brands and Crimson Trace, two accretive acquisitions, making strong in-roads on our strategy to become a leader in the market for shooting, hunting, and rugged outdoor enthusiasts. These acquisitions, which further expand our presence in the markets for outdoor products and accessories, were completed early in the second quarter.

"Based upon that timing, as well as our performance for the first quarter and our revised outlook for the remainder of fiscal 2017, we are raising our full year revenue and net income guidance.”

Shares of Smith & Wesson ended the regular trading session up $1.43 or 5.08 percent, at $29.58. The stock ticked lower by about 0.6 percent after hours.