Smith & Wesson (SWHC) Rises On Improved Third Quarter Outlook
Founded in 1991, Smith & Wesson Holding Corporation is engaged in the manufacture of firearms.
Shares of Springfield, Massachusetts based Smith & Wesson Holding Corporation (SWHC) rose on Tuesday, against the backdrop of a mildly higher day in stocks overall. Smith & Wesson's stock was up 16.47%, rising $1.65 per share to close at 11.67, on volume of 9,428,335 shares. The company reported increased guidance for it's fiscal third quarter and full year net sales and earnings per share.
On Tuesday the company announced increased guidance for its financial results for its fiscal third quarter, ending on January 31, as well as for its full fiscal year that ends on April 30, 2015. The company reports that it has seen improvement in the consumer firearms market.
It also reported that it has successfully completed the acquisition of Battenfeld Technologies, Inc., and its guidance revisions reflect estimates for BTI's financial results. BTI manufactures shooting, reloading, gun-smithing and gun-cleaning supplies under several brands, through large retailers. Smith & Wesson acquired BTI (see news link below) in December for $130 million, adding a broad platform for expanding in the firearms accessories market.
The company now expects net sales of between $124 million and $126 million for the fiscal third quarter. This compares to earlier guidance which had projected net sales of between $113 million and $118 million. Earnings per diluted share from continuing operations are now projected to come in at between $.15 and $.16 per share, compared to a consensus estimate of $.08 per share.
For the entire 2015 fiscal year, the company expects net sales of between $526.0 million and $530.0 million, and GAAP earnings per diluted share from continuing operations of between $0.68 and $0.72. Earnings per share reflect the one-time BTI acquisition costs of $0.03 per diluted share related to amortization of backlog and $0.03 per diluted share related to deal costs. Without those one-time acquisition costs, full year earnings per diluted share for the company from continuing operations would be expected to be between $0.74 and $0.78.
The company will host a conference call and webcast on March 3 discussing its third quarter financial and operational results.
Other News About Smith & Wesson
Smith & Wesson to acquire firearm accessories firm
Battenfeld Technologies makes shooting, reloading, gunsmithing and gun-cleaning supplies.
Smith & Wesson outlook misses views
Earlier guidance that was revised upward on Tuesday.
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