Smith & Wesson Sees Strong Firearm Demand

Smith & Wesson said that its backlog has more than doubled, thanks in part to the new Shield handgun, which the company touts as "concealable."

SPRINGFIELD, Mass. (AP) — Smith & Wesson, citing strong demand for its firearms, boosted its sales outlook for the fourth-Monday.

Shares jumped nearly 7 percent in morning trading.

The company now expects net sales from continuing operations to total about $129 million, up from its previous range of between $113 million to $118 million.

Smith & Wesson also said that its backlog more than doubled to about $439 million as of the end of the quarter, up from $187 million at the same time last year.

The company is seeing strong orders across its product line, including M&P branded products such as pistols, modern sporting rifles, along with the new Shield handgun, which was introduced during the quarter.

The Shield is a slim handgun that the company touts as "concealable."

Analysts, such as Wedbush's Rommel Dionisio, have also cited fears that President Barack Obama may tighten gun laws if he is re-elected.

The shares of Smith & Wesson and its rival, Sturm, Ruger & Co., hit 52-week highs on May 1.

Smith & Wesson releases its fourth-quarter results on June 28.

Shares of Smith & Wesson Holding Corp., based in Springfield, Mass., rose 42 cents, to $6.65, after peaking at $7.05 earlier in the day.

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