Aug. 26, 2014, 4:16 PM
- Smith & Wesson (NASDAQ:SWHC) reports decreased sales of long guns contributed 87% of the company's FQ1 revenue tailoff.
- Gross margin rate -540 bps to 37.2% due in part to the shift in mix away from long guns.
- Operating expense ratio +320 bps to 17.7%.
- The company sees FY15 EPS of $0.89-$0.94 vs. $1.34 consensus.
- Shares of SWHC are under a trading halt.
Jul. 29, 2014, 5:43 PM
- Sturm, Ruger & Co. (NYSE:RGR) estimates it saw a 31% Y/Y drop in Q2 in units sold from distributors to retailers, and an 11% drop for the whole of 1H14. Total NICS adjusted background checks (used to measure industry demand) fell 12% in Q2, and 18% in 1H14.
- Declining sales led gross margin to fall to 32.8% from 39.4% a year ago. Opex fell 13% to $17.3M, with both sales and G&A spend declining. New products were 18% of 1H firearm sales.
- $75M has been added to RGR's buyback authorization, raising its size to $100M.
- RGR -4% AH. Smith & Wesson (NASDAQ:SWHC) -2.3% in sympathy.
- Q2 results, PR
Jun. 20, 2014, 12:45 PM
Jun. 20, 2014, 9:14 AM
Jun. 19, 2014, 4:55 PM
- Though Smith & Wesson (SWHC) beat FQ4 estimates, it's guiding for FQ1 revenue of $130M-$135M and EPS of $0.23-$0.25, far below a consensus of $160.6M and $0.40. The company's annual 2-week production shutdown is expected cut output by $6M-$8M.
- FY15 (ends April '15) guidance is for revenue of $585M-$600M and EPS of $1.30-$1.40, below a consensus of $621.9M and $1.45.
- FQ4 revenue was down 1.5% Y/Y excluding a Walther sale agreement that has since ended. Gross margin rose 260 bps to 40.9%, and opex rose to 15.6% of revenue from 12.1% a year ago.
- Sturm, Ruger & Co. (RGR) is following Smith & Wesson lower.
- FQ4 results, PR
Mar. 5, 2014, 12:45 PM
Mar. 5, 2014, 9:12 AM
Mar. 4, 2014, 5:48 PM
Mar. 4, 2014, 4:22 PM
- Smith & Wesson (SWHC) trades higher in post-close action after the companye bests the FQ3 profit estimate of analysts.
- The company saw its gross profit margin rate rise 360 bps to 40.2% on a favorable product mix and reduced promotions.
- FY14 revenue guidance is raised to $615M-$620M and the S&W sees EPS falling in a range of $1.39-$1.42.
- SWHVC +7.1% AH
Dec. 11, 2013, 10:02 AM
- Smith & Wesson (SWHC +5%) trades higher following its FQ2 report and early look at FQ3 projections.
- Execs with the company say they expected the big drop in November for NCIS background checks, a trend they see continuing through May of next year. They note the upcoming comparables run up against an enormous period of demand and they still see industry trends as positive.
- Related stocks RGR, CAB.
- Earnings call transcript
Dec. 11, 2013, 9:11 AM
Dec. 10, 2013, 5:42 PM
Dec. 10, 2013, 4:39 PM
- Smith & Wesson (SWHC) shares jump 5.8% after the company cleaned out expectations in FQ2 and issued higher-than-expected FQ3 guidance.
- Net sales of $139.3M were up 2% Y/Y; excluding Walther products (under a distribution agreement that ended in April), revenue grew 9.2% Y/Y, driven by a 27.4% Y/Y spike in handgun sales.
- Gross margin represented a 510bp expansion to 41.6%, building on the trend in FQ1. The company cited favorable product mix, absorption, and manufacturing efficiencies, as well as absence of lower-margin Walther sales.
- Opex jumped to 20.9% of sales, or $29.2M, from 16% of sales, or $21.8M, in FQ2 2012; excluding one-time ERP system expenses, opex would have come in at 18.2% of sales, or $25.3M.
- Income from continuing operations was $17.1M ($0.28/share) vs. $16.4M ($0.24/share) in Q2 2012.
- Management sees revenue in FQ3 of $140M-$145M (well above analyst consensus of $137.4M) and EPS of $0.28-$0.30 (vs. $0.27). It reiterates FY2014 guidance for sales of $610M-$620M (vs. $617M) and EPS of $1.30-$1.35 (vs. $1.32).
- Conference call at 5pm ET, PR
Oct. 8, 2013, 10:03 AM
- The Taser (TASR +5.5%) price cut is not as bad as it seems, says JPMorgan's Paul Coster, who took the time to listen on the company conference call.
- It's more a debundling of its Axon/Evidence.com service as total solution pricing has not changed - the company now charges for the first year of evidence.com storage and license fees. The new strategy is intended to eliminate customized sales contracts, thus accelerating the sales cycle.
- Coster ups his price target to $13 from $12, but keeps the stock rated a Hold.
- Related: RGR +1.4%, SWHC +1.1%.
- Previous: The price cut story.
Sep. 17, 2013, 2:51 PM
- Sturm Ruger (RGR +2.4%), Cabela's (CAB +1.5%), and Smith & Wesson (SWHC +2.7%) trade higher after the stocks fell back in response to a mass shooting at the Washington D.C. Navy Yard yesterday.
- Some early reaction to the tragedy is focused on the suspect's history of mental illness, although calls for stricter gun control laws are also part of the debate.
- A broader theme in the weapons manufacturing sector is the trend toward slowing demand. Earlier this month, Smith & Wesson issued guidance for Q3 revenue which fell below the consensus estimate of analysts.
Sep. 6, 2013, 12:45 PM
SWHC vs. ETF Alternatives
Smith & Wesson Holding Corp manufactures firearms. It manufactures handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories.
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