Smith & Wesson Beats Estimates in Fourth Quarter


Smith & Wesson (SWHC) shares jumped over 2.5% in after-hours trading after the company posted better-than-expected fourth-quarter results and forecast first-quarter revenue that was above analyst estimates.

In the fiscal fourth quarter ending on April 20, Smith & Wesson earned $2.7 million or 4 cents a share, compared with earnings of $7.4 million or 14 cents a share, in the year ago period. This matched analyst expectations.

The firearm manufacturer, however, beat the top line figure, reporting a 4.3% revenue rise to $103.8 million, compared with revenue of $99.54 million a year ago. Analysts had expected revenue of $98.90 million.

For the year, net income was $32.5 million, or 53 cents per diluted share, compared with a net loss of $64.2 million or $1.37 per diluted share. Net sales rose 21.3% to $406.2 million, or 21.3% from net sales of $335.0 million for the prior fiscal year.

Looking forward, the Springfield, Mass.-based company projected fiscal first-quarter revenue in the range of $92 million to $96 million, which compares to Wall Street's expectation of $101 million during the quarter. It also expects full-year sales in the range of $430 million and $445 million, beating analyst expectations for $431 million, according to Thomson Reuters.

"In fiscal 2010, we continued to execute on our strategy to grow the firearm business while expanding into new and growing areas of safety, security, and protection," Michael F. Golden, Smith & Wesson President and CEO said. "Although the period of heightened consumer demand, which began in fiscal 2009, subsided in mid-fiscal 2010, we grew our firearm sales, supported by a broad product portfolio that was strengthened with new products," he added.