Smith & Wesson Holding Earnings: Here’s Why Investors Don’t Like These Results

Smith & Wesson Holding Corporation (NASDAQ:SWHC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.27%.

Smith & Wesson Holding Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 60.71% to $0.45 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 25.74% to $171 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Smith & Wesson Holding Corporation reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.36. It beat the average revenue estimate of $165.02 million.

Quoting Management: James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, stated, “Our results for the first quarter of fiscal 2014 reflect the continued successful execution of our growth strategy. We delivered improvements across all of our key metrics, including a meaningful increase in year-over-year sales and significant expansion of our gross margins. Ongoing increases in our manufacturing capacity, combined with strong consumer demand for firearms, resulted in increased market share and higher sales of our most popular M&P® products. Amidst that robust growth, we drove a number of significant initiatives in the quarter designed to strengthen our business and return increased value to our stockholders.”

Key Stats (on next page)…

Revenue decreased 4.32% from $178.72 million in the previous quarter. EPS increased 2.27% from $0.44 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.27 to a profit $0.29. For the current year, the average estimate has moved up from a profit of $1.08 to a profit of $1.3 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]