Smith & Wesson up 14% on Strong Q4 Earnings

Smith & Wesson Holding Corporation

is trading higher on the session following its Q4 earnings announcement. The company reported an EPS of $0.27 vs $0.17 estimates and revenues of $129.8 million vs $126.53 million estimates. Smith & Wesson also announced it sees Q1 Sales of $125-130M vs $126.53 million estimates and GAAP EPS $0.16-0.19. Jeffrey D. Buchanan, Executive Vice President and Chief Financial Officer, said: "In fiscal 2012, our growing cash position allowed us to pay down $30.0 million of debt and increase our manufacturing capacity without accessing our line of credit. As we move into fiscal 2013, we will use the strength of our balance sheet to continue investing in our business. Recently, and after the end of the fiscal year, our strong cash position provided us the opportunity to enter the bond market and begin to repurchase our senior notes. Thus far, we have purchased $6.4 million of the notes. Overall, our growth in fiscal 2012 helped lay a solid fiscal foundation for the further expected improvement that is reflected in our financial guidance for fiscal 2013." Smith & Wesson is currently trading at $7.85, a gain of $0.96 or 13.96%.