Smith & Wesson Rises After Raising Full-Year Forecast

By Roger Baettig | December 07 2012 8:30 AM

Smith & Wesson (NASDAQ: SWHC [FREE Stock Trend Analysis]) released its fiscal second-quarter earnings results after the closing bell on Thursday. In after hours trading, the stock rose a little less than 3 percent to $11.16. The stock has been extremely strong in 2012, rising more than 171 percent as Smith & Wesson has benefited from strong gun sales. Throughout the calendar year, revenues, income, and margins have been ticking up at the company.

smith-wesson.com

Sponsorship Link

In its most recent quarter, Smith & Wesson reported earnings that were in-line with estimates and revenue which slightly beat expectations. The company also guided for third-quarter earnings and revenue which is above Street consensus.

Furthermore, Smith & Wesson raised its full-year guidance. For the full-year, the company now expects GAAP earnings per share of $1.00 to $1.05 on revenue of $550.0 million to $560.0 million. This compares to current consensus of $0.91 per share on revenue of $537.94 million.

In the most recent quarter, Smith & Wesson reported net income of $16.40 million or $0.24 per share, compared net income of $940,000 or $0.01 per share, in last year's corresponding quarter. This was in-line with Wall Street consensus EPS estimates.

Net sales in the second-quarter were $136.6 million, a 48 percent rise versus the $92.29 million Smith & Wesson reported last year. This beat analysts' consensus revenue estimates of $134.78 million.

Looking ahead to Q3, the company guided for earnings per share of $0.19 to $0.21 on revenue of $126.0 million to $131.0 million. This compares to current consensus of $0.16 per share on revenue of $125.16 million for the third-quarter.

Despite the strong results, SWHC only added around three percent in after hours trading. With the stock up so much on the year, it is possible that some investors will look to lighten their positions on Friday. The stock, however, is closing in on a new 52-week high and could continue to run if it can break above $11.24 early in the session.