Smith & Wesson (SWHC) Raises Outlook, Shares Soar
Shares of Smith & Wesson Holding Corp. (SWHC) were trading up +1.71 or +7.35 percent to $24.99 per share in Tuesday’s premarket after the company issued a better than expected guidance for the third quarter and fiscal 2016 year. Smith & Wesson Holding Corp. stock closed at $23.28 per share, up +1.30 or +5.91 percent in yesterday’s regular trading session.
Springfield, Massachusetts based Smith & Wesson Holding Corp. was founded in Norwich, Connecticut in1852 by Horace Smith and Daniel B.
Yesterday, the company announced that it now expects fiscal third quarter revenue of $175 million to $180 million with earnings per share of $0.39 to $0.41. Full 2016 fiscal year guidance is now for $650 million to $660 million with earnings per share of $1.36 to $1.41. The analyst consensus was for $154.6 million or $0.28 per share for the third quarter and $636.5 million and $1.32 for the full year.
Referring to itself in the third person, Smith & Wesson stated that, “The Company indicated that the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms. The company added that Adjusted National Instant Criminal Background Check System (NICS) data for the month of December, which serves as an indicator of consumer purchases, reflected strong growth versus December 2014.”
The surge in Smith & Wesson along with rival Sturm Ruger (RGR) shares came after Obama announced on his weekly address on Friday that he planned to discuss gun control options with Attorney General Loretta Lynch. “A few months ago, I directed my team at the White House to look into any new actions I can take to help reduce gun violence, and on Monday, I’ll meet with our Attorney General, Loretta Lynch, to discuss our options.”
According to ABC News, the details of Obama’s possible executive orders will be announced later today. Obama is expected to detail the meaning of being “in the business” of selling guns in the country under U.S. law. The possible measure could require gun dealers to institute background checks on potential firearms purchasers.
Sales for firearms typically rise ahead of any possible gun control legislation. Obama’s intention of tightening U.S. gun control laws has sparked significant demand for guns from the public since reports of these plans surfaced last Thursday. The President is scheduled for a Town Hall meeting in which he will discuss gun control on Thursday.
Due to the premarket action, Smith & Wesson stock will open at a new all time high this morning. The stock was one of the best performers in yesterday’s market action, which saw most stocks sell off sharply.
Other News About SWHC
Smith & Wesson’s Jaw-Dropping Year
Sales this year have been much better than expected.
Smith & Wesson: Fundamentals Fuel Turnaround In 2015
Company’s turnaround began last April.
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