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

Zinger Key Points
  • Smith & Wesson Q3 adjusted EPS of $0.19 beat the consensus estimate of $0.10.
  • Smith & Wesson recorded a 6.6% revenue growth in Q3.

Shares of Smith & Wesson Brands, Inc 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

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsMoversGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!