Smith & Wesson Holding Corporation (NASDAQ: SWHC)
Smith & Wesson Holding Corporation (SWHC), a firearm manufacturing company on Tuesday announced that they have raised their third quarter and Fiscal 2016 guidance numbers. SWHC has now raised their third quarter revenue numbers to a range of $175 million and $180 million from the prior expected range of $150 million and $155 million. SWHC also raised their third quarter adjusted earnings numbers to a range of 39 cents and 41 cents per share up from prior expected range of 27 cents and 29 cents per share. Consequently SWHC also adjusted their full fiscal 2016 numbers as revenues now ranges from $650 to $660 million and adjusted per share earnings to be in a range of $1.36 and $1.41.
SWHC Technical Analysis
SWHC gapped up in price yesterday to $25.59, up from the prior day’s close of $23.28, which is a 10% increase on favorable news. Taking a look at the daily chart, we can see that we are now in unchartered territory as SWHC is trading at all time highs. Taking a closer look at the daily chart we can see that SWHC is on an upswing dating back to December 3rd when it traded at $18.36, equivalent to a 39% move up. SWHC has a float of 53.62 million shares and is trading 2 times the normal daily trading volume. SWHC hit pre market highs of $25.69, but gave back $0.10 at the open. For trading purposes, my entry point would have been $25.75 looking for a run through $26. My stop loss would have been $25.60, fearing anything below that and the stock would start to fill in the gap up.
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