Smith & Wesson Holding (Nasdaq: SWHC) reported earnings on June 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q4), Smith & Wesson Holding beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins expanded across the board.
Revenue details
Smith & Wesson Holding tallied revenue of $129.0 million. The five analysts polled by S&P Capital IQ predicted sales of $119.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $111.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.27. The five earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.19 for Q4 were much higher than the prior-year quarter's $0.02 per share.
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 34.2%, 470 basis points better than the prior-year quarter. Operating margin was 17.9%, 1,380 basis points better than the prior-year quarter. Net margin was 9.6%, 860 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $129.3 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $499.7 million. The average EPS estimate is $0.63.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 817 members out of 880 rating the stock outperform, and 64 members rating it underperform. Among 200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give Smith & Wesson Holding a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Wesson Holding is buy, with an average price target of $9.50.
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