Smith & Wesson Could Be Worth A Shot Ahead Of Earnings

Shareholders of Smith & Wesson Holding Corp SWHC could get some much-needed relief on Thursday when the gun maker releases its fiscal Q2 earnings report. Data from Estimize suggests traders are anticipating both an earnings and revenue beat from Smith & Wesson.

Wall Street analysts are calling for EPS of $0.53 on revenue of $196.7 million for the quarter. Estimize is predicting EPS of $0.62 on revenue of $206.9 million. That type of 5.1 percent revenue beat could result in a major move in Smith & Wesson’s shares on Friday.

Estimize earnings estimates for Smith & Wesson have been closer to the actual reported number than Wall Street consensus estimates in each of the past seven quarters.

The FBI just released positive NICS background check data for the month of November as well. November’s 2,561,281 checks mark the 19th consecutive month of record firearm background checks.

Some positive post-earnings momentum would be welcome news for shareholders following a brutal post-election selloff. The prospect of a pro-gun President Trump and a Republican-controlled Congress has eased public fears about meaningful new gun control legislation. Unfortunately for gun stock investors, gun buyers may not feel the need to continue to stockpile firearms at record levels.

Gun stocks Smith & Wesson and Sturm Ruger & Company Inc RGR both plummeted more than 25 percent in the days following the election, but have since stabilized at slightly higher levels.