Smith & Wesson Issues Solid Q3, FY16 Outlook; Shares React


27% profit every 20 days?

This is what Nic Chahine averages with his option 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.


Smith & Wesson Holding Corp (NASDAQ: SWHC) shares have rallied more than 5 percent during Monday's post-market session. The stock is moving on the heels of stronger-than-expected third-quarter and fiscal-year 2016 guidance from the company.

Smith & Wesson, ahead of an expected Thursday townhall meeting by President Barack Obama to discuss gun control in the United States, said, "the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms."

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The company said it's anticipating third-quarter adjusted earnings in the range of $0.39 to $0.41 per share on sales of between $175 million and $180 million. Analysts have modeled for Smith & Wesson to report third-quarter EPS of just $0.28 on sales of $154.6 million.

For the fiscal year 2016, Smith & Wesson is expecting adjust earnings of $1.36 to $1.41 per share, compared to the current analyst consensus estimate of $1.32. Sales are expected to be between $650 million and $660 million, versus Wall Street's estimate for around $636 million.

As Smith & Wesson relatively recently reported second-quarter results on December 8, 2015, the company isn't expected to report third-quarter figures until early March.

Likely feeling a sympathy move with the reaction in Smith & Wesson shares, Sturm, Ruger & Company (NYSE: RGR) shares were last indicated at $61.90, up nearly 1 percent during after-hours trade.


27% profit every 20 days?

This is what Nic Chahine averages with his option 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.


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