Smith & Wesson Holding
The 10-second takeaway
For the quarter ended Oct. 31 (Q2), Smith & Wesson Holding met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Margins grew across the board.
Smith & Wesson Holding reported revenue of $136.6 million. The five analysts polled by S&P Capital IQ predicted revenue of $136.1 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $92.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The six earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS were $0.32 for Q2 compared to -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.5%, 800 basis points better than the prior-year quarter. Operating margin was 19.5%, 1,490 basis points better than the prior-year quarter. Net margin was 15.5%, 1,720 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $125.2 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $537.9 million. The average EPS estimate is $0.91.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 844 members out of 910 rating the stock outperform, and 66 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 197 give Smith & Wesson Holding a green thumbs-up, and 13 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 $12.75.
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