Smith & Wesson's 2Q Net Income Falls 20 Percent
NEWS: Smith & Wesson Holding Corp. said Tuesday that its net income fell 20 percent in its fiscal second quarter, even as demand for its handguns rose. The firearm maker's results easily beat Wall Street expectations and its shares soared in after-hours trading.
DETAILS: The company, based in Springfield, Mass., makes guns for hunters, personal protection, law enforcement and military agencies. Smith & Wesson said sales of its handguns during the quarter rose 27 percent. But costs were higher.
NUMBERS: Net income fell to $17 million, or 28 cents per share, in the quarter that ended on Oct. 31. That compares with net income of $21.2 million, or 31 cents per share, in the same quarter a year ago. Revenue rose 2 percent to $139.3 million.
Analysts expected earnings of 21 cents per share and revenue of $137.8 million
FUTURE: For the third quarter, the company expects earnings between 28 cents per share and 30 cents per share and revenue between $140 million and $145 million.
Analysts expected earnings of 26 cents per share and revenue of $136 million, according to FactSet.
For the full year, the company expects earning between $1.30 per share and $1.35 per share and revenue between $610 million and $620 million, bracketing Wall Street's prediction.
STOCK: In after-hours trading, its shares rose 68 cents, or 5.6 percent, to $12.80. They closed at $12.12 Tuesday, up 44 percent this year.