Smith & Wesson 1Q profit falls

The results fell short of Wall Street earnings estimates.

For the quarter ended July 31, the company posted net income of $2.3 million, or 5 cents per share. That compares with $4.7 million, or 11 cents per share, in the same period last year.

Revenue rose 4.9 percent to $78 million from $74.4 million in the first quarter of fiscal 2007.

The company gets revenue from sales of products and services as well as licensing.

Analysts polled by Thomson Reuters expected earnings of 7 cents per share on revenue of $75.4 million.

Sales of pistols, tactical rifles, revolvers and non-firearms accessories rose during the quarter.

But sales of specialty rifles and shotguns in the hunting products segment fell by 18.4 percent to $14.6 million versus the prior-year quarter.

Michael Golden, the company's president and chief executive, blamed the U.S. economic slump's impact on consumer discretionary spending combined with industry inventory conditions in the hunting products category.

"The negative impact of the current environment was evident in our long gun sales in every hunting-related category, as well as in our gross margin performance," Golden said in a statement.