Smith & Wesson Holding Beats Up on Analysts Yet Again

Smith & Wesson Holding (Nasdaq: SWHC  ) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q3), Smith & Wesson Holding beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share increased.

Margins grew across the board.

Revenue details
Smith & Wesson Holding reported revenue of $98.1 million. The five analysts polled by S&P Capital IQ expected to see revenue of $95.2 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $89.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.08. The six earnings estimates compiled by S&P Capital IQ averaged $0.04 per share on the same basis. GAAP EPS were $0.07 for Q3, versus -$0.88 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.6%, 560 basis points better than the prior-year quarter. Operating margin was 10.5%, 1,470 basis points better than the prior-year quarter. Net margin was 4.5%, 6,360 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $114.0 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $393.0 million. The average EPS estimate is $0.22.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 802 members rating the stock outperform and 61 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Smith & Wesson Holding a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Wesson Holding is outperform, with an average price target of $6.50.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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