Smith & Wesson Holding CorporationNASDAQ
Smith & Wesson: The Mystifying And Expensive Acquisition Of Battenfeld Technologies, Inc.
Cary M. Cox • 10 Comments
Cary M. Cox • 10 Comments
Smith & Wesson: Near-Term Headwinds, Long-Term Tailwinds
Cary M. Cox • 10 Comments
Cary M. Cox • 10 Comments
Fri, Sep. 23, 6:49 PM
- Smith & Wesson (SWHC -0.2%) is off 3.5% after hours after its bid to replace the Army's standard sidearm, a Beretta M9, was rejected by the service.
- "We and our partner" -- General Dynamics (GD -0.7%) -- "in the pursuit of the U.S. Army’s Modular Handgun System, or MHS, solicitation to replace the M9 standard Army sidearm have been notified by the Department of the Army that our proposal was not selected to advance to the next phase of the competition," the company says in an SEC filing.
- That program hasn't been included in Smith & Wesson's guidance, it said.
Fri, Sep. 23, 5:35 PM
Fri, Sep. 23, 3:57 AM
- A curfew went into effect in Charlotte at midnight, as a third night of protests erupted following the police shooting of Keith Scott.
- The latest uprising comes after one person was killed, 44 people were arrested and multiple businesses were destroyed in previous riots.
- His family was shown footage of the death yesterday, but their lawyer said the video angle couldn't reveal whether Scott was holding a gun.
- Related tickers: TASR, DGLY, SWHC, RGR, VSTO
Thu, Sep. 22, 2:40 AM
- North Carolina Governor Pat McCrory declared a state of emergency in Charlotte last night after violent new protests erupted over the police shooting of Keith Scott.
- Several officers were injured and one of the protesters was on life support after being shot by another civilian.
- Related stocks rallied yesterday in response to the growing unrest: (TASR +4.4%), (DGLY +2.4%), (SWHC +1.8%), (RGR +2.8%), (VSTO +1.7%).
Thu, Sep. 1, 4:22 PM
- Smith & Wesson (SWHC +5.1%) is crossing and re-crossing the flat line after hours following a fiscal Q1 earnings report where it beat expectations and again raised guidance, including incorporating impact from acquisitions.
- Sales jumped 40% (the company believes due to "strong consumer demand as reflected in adjusted background checks from the National Instant Criminal Background Check System as well as our own market share gains") and EBITDA was $65.8M, easily beating an expected $58.5M. Net income more than doubled on GAAP and non-GAAP bases.
- The company's performance and two accretive acquisitions -- of Crimson Trace and Taylor Brands -- lead to a boost in guidance. For fiscal Q2, it sees net sales of $220M-$230M (well above consensus for $166.2M) and non-GAAP EPS of $0.53-$0.57 (vs. expected $0.35). For the full year, it forecasts sales of $900M-$920M (above consensus for $778.4M) and EPS of $2.38-$2.48 (vs. consensus for $1.94).
- It's also positioning its accessories unit and a new electro-optics division in a new segment, Outdoor Products & Accessories, which will be reported separately from Firearms.
- Conference call to come at 5 p.m. ET.
- Press Release
Thu, Sep. 1, 4:06 PM
Wed, Aug. 31, 5:35 PM
Mon, Aug. 29, 9:09 AM| Mon, Aug. 29, 9:09 AM | 10 Comments
Thu, Aug. 18, 4:51 AM
- The European Commission has adopted a package of measures to make it more difficult to acquire firearms in the EU, better track legally held firearms, strengthen cooperation between member states, and ensure that deactivated firearms are rendered inoperable.
- The proposals presented were foreseen in the European Security Agenda adopted in April 2015, but have been significantly accelerated in light of recent events.
Fri, Aug. 5, 3:44 AM
- The latest figures from the FBI show that July 2016 was the 15th consecutive month of record background checks for gun sales.
- The previous July record was set in 2015, when there were 1,600,832 checks, but last month there were 2,197,169.
- Each person may buy multiple firearms once passing a background check, so the amount of guns sold at retail may be even higher than then number of background checks performed.
- Related tickers: SWHC, RGR, CAB, VSTO
Mon, Jul. 25, 5:14 AM
- At least two people have been killed and more than a dozen others injured after a shooting at the Club Blu nightclub in Fort Myers, Florida.
- The incident comes a month after a gunman who pledged allegiance to Islamic State killed 49 people at the Pulse nightclub in Orlando.
- Gun and law enforcement stocks will be on watch at the open: SWHC, RGR, VSTO, TASR, DGLY
Mon, Jul. 18, 8:50 AM
- Smith & Wesson Holding Corporation (NASDAQ:SWHC) announces that its Battenfeld Technologies division acquired knife maker Taylor Brands for $85.0M .
- The company plans to use cash on hand to make the purchase.
- Taylor Brands has been a long-standing licensee for both Smith & Wesson and M&P branded knives and is the direct owner of a number of highly-regarded, legacy brands including Schrade, Uncle Henry, Old Timer, and Imperial.
- Smith & Wesson CEO James Debney on the deal: "Taylor Brands has delivered solid growth as well as gross margins that are aligned with those in our existing Accessories Division. We believe that these newly added product lines will benefit synergistically from the product innovation, distribution network, and efficient sourcing model that have contributed to the success of our Accessories Division."
- The company expects the transaction to close in three to six weeks. Due to its anticipated timing, the transaction is expected to have no impact on Smith & Wesson's operational and financial results for the FY17 Q1 ending July 31, 2016.
- The purchase price for Taylor Brands represents an estimated multiple of approximately 11x the trailing twelve month EBITDA.
- SWHC +1.411% premarket to $28.75
- Source: Press Release
Mon, Jul. 11, 11:01 AM
- TASER International (NASDAQ:TASR) is up another 4.50% on extremely high volume, while Digital Ally (NASDAQ:DGLY) has retreated 7.8%.
- Both gun manufacturer stocks are in positive territory on the day.
- Wall Street firms are quiet on the development as they stick with their pattern of holding back analysis on the short-term impact on Smith & Wesson (SWHC +1.4%) and Sturm Ruger (RGR +2.6%) of major shooting incidents to keep the focus on the long-term.
Fri, Jul. 8, 8:26 AM
- Gun stocks Smith & Wesson (NASDAQ:SWHC) and Sturm Ruger (NYSE:RGR) are higher in an apparent reaction to the impact of the killing of five police officers in Dallas, Texas last night during a protest rally.
- Dallas police chief David Brown stated that multiple people armed with rifles were believed to have carried out the attacks.
- SWHC +4.45% premarket to $29.55 and RGR +2.29% to $66.00.
Wed, Jul. 6, 12:40 PM
- Firearm background checks spiked during June, according to data from the NICS. The Orlando terrorist attack on June 12 was a significant factor.
- The number of checks rose 39% Y/Y and 14% M/M to 2.131M.
- YTD background checks are up over 13.8M now.
- Despite the strong sales trend, the percentage of U.S. households owning a gun in actually in decline as prior owners continue to stockpile.
- FBI background check data (.pdf)
- Related stocks: SWHC, RGR, VSTO, CAB.
Fri, Jul. 1, 2:57 AM
- A week after Democrats staged a nearly 26-hour sit-in demanding a vote on gun control measures, Speaker Paul Ryan said the House will vote on legislation to block suspected terrorists from buying guns next week.
- It's still unclear, however, if the proposal would include the broad "no fly, no buy" proposal Democrats have supported or a more limited version endorsed by the NRA. The House will also take up a bipartisan mental health bill.
- Related tickers: SWHC, RGR, VSTO