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What: Shares of gunmaker Smith & Wesson Holding Corp. (SWBI -0.29%) jumped 11.5% in June, according to data provided by S&P Global Market Intelligence, as earnings easily surpassed expectations.

So what: Sales jumped 22% in the quarter, to $221.1 million, and net income jumped 62.6%, to $35.6 million. On an adjusted per share basis, earnings jumped to $0.66, which easily surpassed the $0.54 analysts expected. 

Smith & Wesson has been able to leverage its manufacturing base and increase gross margin from 37.1% to 41.6% over the past year. This sets the company up for solid profitability going forward.

Now what: The surge in gun sales continues as consumers fear future regulation, and politicians and violence fuel those flames. That's the fact of life in the gun industry, and the dynamic has certainly been good for business for Smith & Wesson. With a trailing price-to-earnings ratio of just 16.5 and growth well into double digits, the stock looks like a decent value as well. Barring any big jolts to business, the future is bright in the gun industry.