Smith & Wesson Holding Corporation (NASDAQ: SWHC)
On Thursday March 3rd 2016, Smith and Wesson Inc, reported their third quarter earnings which blew out early analysts earnings expectations on both of top and bottom line. America’s most respected and well-known name in the arms industry by gun enthusiasts, law enforcement personnel, and the military handily beat estimates in an environment where some companies are missing their earnings estimates by wide margins. From cops to criminals, Smith and Wesson is a favorite go to weapon for defense, protection, and unfortunately also for crime.
While shares finished the day up a modest $0.12,closing at $25.40, shares surged much higher in the aftermarket session closing at $26.74 which was up $1.34 as of 8 p.m. Eastern Standard Time.
SWHC, The Numbers
The company reported earnings of $0.59 a share which represented $0.20 higher than analysts had been looking for. Sales also were much higher than what they were looking for, which came in at $ 210 million dollars versus estimates of $174 million dollars.
Immediately after the earnings were announced shares surged as high as 7% in the after-hours trading session, breaking out of a pattern which usually portends to higher prices: namely a “cup and handle “.
Smith & Wesson (SWHC) Company Comments
“The combined strength of our firearms and accessories businesses delivered an exceptional performance, driven by healthy consumer demand across our growing portfolio of firearm and outdoor lifestyle offerings,” Smith & Wesson CEO James Debney said in a statement.
“Despite the fact that we entered our fourth quarter with lower inventories,” he added, “we are focused on increasing the production rates of our key products during the fourth quarter and we are therefore increasing our guidance for the full fiscal year.”-InvestorsBusinessDaily
Technicals
Please see the accompanying daily price chart going back to January of 2015. You will note the green upward trend lines angled at roughly 45 degrees, which is considered a very strong pattern for continued higher prices. You will see the area of green arrows with the circle, indicating where shares will likely open for trading tomorrow morning. This pattern formed from January 2016 to the present- called the cup and handle-has been documented and researched for many many years by Chartists and market technicians, and usually portends to much higher prices going forward. Many eyes will be on this name when the market opens for trading on Friday.
Summary
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.-YahooFinance
