Smith & Wesson (SWHC) Beats on EPS & Outlook

Smith & Wesson Holding Corporation (SWHC) rallied $1.10, or 8.43%, to $14.15 in the extended session Tuesday after it reported fiscal results for the third quarter ended January 31, 2015.

In its quarterly report, the gun maker said it earned $0.20 per share, adjusted for one-time gains and costs, well above the $0.12 per share analysts were expecting. Revenues however, fell 10.5% to $130.6 million, below views for $124.81 million.

For Q415, the company guided revenues between $162-$166 million, as compared to analysts’ expectations of $160.01 million. The management also gave its bottom line range of $0.24-$0.26 per share, against projections of $0.24 per share.

For full-year 2015, the company said it expects net sales to be between $532 million and $536 million and EPS from continuing operations to be between $0.75 and $0.77. On a non-GAAP basis, EPS is expected to be between $0.87 and $0.89.

On valuation measures, Smith & Wesson Holding Corp. shares, which currently have an average 3-month trading volume of 1.32 million shares, trade at a trailing-12 P/E of 11.21, a forward P/E of 13.18 and a P/E to growth ratio of 1.40. The median Wall Street price target on the name is $15.00 with a high target of $16.00. Currently ticker boasts 6 ‘Buy’ endorsements, compared to 1 ’Hold’ and no ‘Sell’.

Profitability-wise, SWHC has a t-12 profit and operating margin of 11.76% and 20.17%, respectively. The $700.84 million market cap company reported $59 million in cash vs. $175.00 million in debt in its most recent quarter.

SWHC currently prints a one year return of about 18.60% and a year-to-date return of around 44%.

The chart below shows where the equity has traded over the last 52 weeks.

Smith & Wesson Holding Corp. manufactures and sells firearm products in the United States and internationally. The company was founded in 1852 and is based in Springfield, Massachusetts.

Be the first to comment

Leave a Reply

Your email address will not be published.


*