Smith & Wesson Holding
The 10-second takeaway
For the quarter ended Jan. 31 (Q3), Smith & Wesson Holding beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Smith & Wesson Holding reported revenue of $136.2 million. The five analysts polled by S&P Capital IQ expected to see net sales of $133.7 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $98.1 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 $0.26. The six earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. Non-GAAP EPS of $0.26 for Q3 were 225% higher than the prior-year quarter's $0.08 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.22 for Q3 were 214% higher than the prior-year quarter's $0.07 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.8%, 590 basis points better than the prior-year quarter. Operating margin was 20.6%, 970 basis points better than the prior-year quarter. Net margin was 10.7%, 620 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $156.5 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $563.1 million. The average EPS estimate is $1.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 940 members out of 1,009 rating the stock outperform, and 69 members rating it underperform. Among 231 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 218 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 $13.33.
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