Smith & Wesson Stock Falls As Company Won't Get U.S. Army Contract
Investors sentiment on Smith & Wesson Holding Corp (NASDAQ: SWHC) remained weak following the reports that the company would not get contract from the Untied States Army.
The stock was down more than 6 percent, taking the monthly loss to about 4.8 percent in September. The U.S. Army rejected the company's bid to replace the Beretta M9 standard sidearm, according to its filing with the SEC.
The contract for replacing the sidearm is estimated to be between $350 million and over $1 billion. However, the company indicated it did not include the potential contract winning in its financial outlook.
In a filing, Smith & Wesson indicated, "We are assessing our options in response to the notification and remain focused on achieving our long-term strategy of organically and inorganically expanding our product offerings in the consumer market for shooting, hunting, and rugged outdoor enthusiasts."
At time of writing this, the stock fell to $26.83, down $1.75, or 6.3 percent.
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