Why Firearm Maker Smith & Wesson's Shares Are Shooting Higher Today


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


Shares of Smith & Wesson Brands, Inc (NASDAQ:SWBI) are trading higher after it reported a third-quarter FY24 yesterday.

The company recorded sales growth of 6.5% year-on-year to $137.5 million, beating the analyst consensus estimate of $133.55 million.

The gross margin contracted 370 basis points to 28.7%, and the gross profit fell 5.7% to $39.4 million. The operating income for the quarter decreased 20.2% to $11.3 million, and the operating margin was 8.2%.

Adjusted EBITDA for the quarter decreased 14.7% to $21.4 million with a margin of 15.6%. Adjusted EPS of $0.19 beat the consensus estimate of $0.10.

Inventories as of January 31, 2024, declined to $153.5 million from $177.12 million as of April 30, 2023.

Smith & Wesson held $47.4 million in cash and equivalents as of January 31, 2024. The operating cash flow for nine months totaled $63.1 million.

“We believe we gained market share as our shipments outpaced the overall firearm market, reflecting the continuing robust demand for our best-in-class, innovative new products and sustained momentum in our core product portfolio,” said President and CEO Mark Smith.

The company’s board of directors has authorized a $0.12 per share quarterly dividend, which will be paid to stockholders of record on March 21, 2024, with payment to be made on April 4, 2024.

Price Action: SWBI shares are trading higher by 9.45% at $14.71 in premarket on the last check Friday.

Photo via Shutterstock


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: EarningsEquitiesNewsMoversGeneralBriefswhy it's moving