Overview

• Firearm manufacturer's fiscal Q3 net sales rose 17.1% yr/yr

• Company achieved Q3 gross margin of 26.2%, up from last year

• Adjusted EPS for fiscal Q3 was $0.08

Outlook

• Smith & Wesson expects Q4 sales to rise 10-12% over last year's Q4

Result Drivers

• HANDGUN PERFORMANCE - Co reported exceptional handgun results with unit shipments up 28% in sporting goods channel despite a 2.2% decline in NICS

• INVENTORY MANAGEMENT - Co focused on driving inventory levels down over the past year, now increasing production to meet demand, expected to positively impact margins

• BRAND AND PRODUCT STRENGTH - Co attributed growth and market share gains to brand strength, product assortment, and new offerings in a stable market

Company press release: ID:nNFC75WWzv

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Smith & Wesson Brands Inc is $13.50, about 12.4% above its March 4 closing price of $12.01

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 38 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)