Gun Stocks Backfire On Weak FBI Firearm Background Check Data

Smith & Wesson Holding Corp SWHC reported a big Q2 earnings beat and delivered guidance well above consensus analyst expectations for next quarter. Unfortunately for shareholders, the brilliant Q2 report was overshadowed by disappointing National Instant Criminal Background Check System (NICS) data for the month of August.

Smith & Wesson reported Q1 EPS of $0.62 on revenue of $207 million, well ahead of analyst expectations of $0.53 and $198.1 million, respectively. On top of that, the company’s Q2 revenue guidance of $220-230 million blew away consensus estimates of $165.4 million.

However, the FBI NICS background check data for August revealed 1,853,815 checks, a disappointing number. While that number represents a new August record, it also marks the first time in the history of NICS data that checks declined month-over-month in August. There were 2,197,169 total checks in July.

Benzinga Pro subscribers were previously alerted to the reason for the move.