“Although fiscal 2023 was challenging, we project a similar consumer demand for fiscal 2024, yet anticipate an increase in our shipments given the significant decline in inventory during the first half of last fiscal year.” “The results for the fourth quarter exceeded our expectations,” said Deana McPherson, EVP and CFO of Smith & Wesson Brands. Some investors seem concerned about selling-down before the release, however the stock has a clear track record of posting a strong rally on the ‘Earnings Day’, shown by a sizable 10%+ return for every result since the beginning of 2022. Fintel tracks data on Pre and Post Earnings Drift of stocks and for Smith & Wesson, the shares have been weak ahead of results in two out of the last three quarters. One interesting characteristic of SWBI stock is its weakness leading into results. This ASP growth was predominantly driven by the introduction of new long guns into the market.Ī chart from Fintel’s Earnings page for SWBI shows the quarterly performance of the company against expectations and the earnings surprise produced by every result. Moreover, the company’s average selling price (ASP) for the quarter was ~$462, about 55% higher than the $298 average price in the corresponding pre-pandemic quarter. The price of Sturm Ruger ( US:RGR ) stock is down 18.9%, American Outdoor Brands ( US:AOUT ) is down 25.8% and Ammo Inc.( US:POWW ) is off 47%, in the same time frame. Over the last 12 months, SWBI stock has outpaced rival gun makers as the share price decreased 5.7%. New product sales and promotions served as primary revenue catalysts. Smith & Wesson was able to beat both sales and profit expectations, fueled by solid sales of handguns and long guns. Notwithstanding a year-on-year decline of 20.1%, the firm’s net sales for Q4 were $144.8 million, faring much better than the Streets’ forecast of $138 million. The Springfield, Massachusetts-based company disclosed adjusted earnings of 32 cents per share, surpassing the 29 cents predicted by analysts. The firearms manufacturer reported stronger-than-expected earnings for the fourth quarter, beating consensus estimates, which promptly ignited investor enthusiasm.
In a sharp rebound after a challenging fiscal year, Smith & Wesson Brands ( US:SWBI ) saw its shares soar 20% in Friday’s trading session.
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