Smith & Wesson Holding Corporation (NASDAQ: SWHC)
On Thursday August 27, Smith and Wesson, the popular gun manufacturer based in the United States in Springfield Massachusetts, posted 2016 fiscal earnings that exceeded analyst estimates on both revenues and earnings per share and the stock roared. SWHC shares traded higher by + $0.27 in the regular trading session closing at $16.22 but flew up 8% in the after-market session closing at $17.22 at the 8 p.m. close, or up +8%.
The numbers were stellar as SWHC reported earnings of $0.32 cents a share for the fiscal first quarter, beating analysts’ estimates of $0.22 a share for the period. Revenue grew by 12.2% year over year to $147.76 million for the quarter, above analysts’ estimates of $142.76 million.
Smith & Wesson Holding Corp.’s CEO Comments
CEO Hames Debney proudly said,
“Our first quarter results exceeded our expectations for sales and net income in both our firearms and accessories divisions.” Higher revenue in our firearms division was driven by strong orders for our M&P 15 Sport rifles, our Thompson/Center Venture bolt-action rifles and our M&P Shield polymer pistols.”
Going forward, the company said it expects to report earnings of $0.16 to $0.18 cents a share and revenue of $135 million to $140 million for the fiscal 2016 second quarter. Analysts expect the company to report earnings of $0.15 a share and revenue of $129.58 million for the quarter.-thestreet.com
Chart and Technical Analysis
Please see the accompanying chart showing the daily price action from the beginning of 2015. You will notice the green arrows showing the upward trending 45 degree angle of price trend and arrows indicating higher highs and higher lows – EXACTLY what you want to see when you own a strong stock. A price trend at the 45 degree angle stands the best chance of continuing that trend for the long term. When we see trend angles start to steep in the 75 – 90% range that’s when you know you may be coming to the end of a trend either up or down in nature.
Smith & Wesson Holding Corporation manufactures and sells firearm products in the United States and internationally. The company operates in two segments, firearms and accessories. It offers handguns, including revolvers and pistols; long guns, such as sporting, bolt action, and single shot rifles; hunting rifles; black powder firearms; handcuffs and restraints; and firearm-related products and accessories. The company sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, BOG-POD, and Golden Rod Moisture Control brands. It also provides metal processing and finishing services comprising tooling, forging, heat treating, finishing, plating, plastic injection molding, and engineering support services to third-party customers; and licensing of trademarks to third parties. The company serves gun enthusiasts; collectors; hunters; sportsmen; competitive shooters; individuals desiring home and personal protection; law enforcement and security agencies and officers; and military agencies. Smith & Wesson Holding Corporation sells its products through distributors; federal, state, and municipal law enforcement agencies and officers; government and military agencies; businesses; retailers; and consumers. It also operates Websites; and an online retail store that sells hunting and shooting accessories, branded products, apparel, and related shooting supplies. The company was founded in 1852 and is based in Springfield, Massachusetts. Yahoo! Finance