Market analysts back away from gun makers

By Christen Smith

Market analysts backed away from gun makers last week after Smith & Wesson executives slashed the company’s forecasted annual earnings by $100 million.
Maksim Netrebov, founder of New Jersey-based Maks Financial Services and contributor at Seeking Alpha, slammed the gun maker’s holding company, American Outdoor Brands, in a Dec. 11 article for evading questions regarding why the lowered guidance came only now — and not a year ago when President Donald Trump’s electoral victory left the industry flush with inventory and short on demand.
“If we are on the Titanic, the Iceberg is now visible, it is too late to stop the ship and the deck chairs are arranged,” he said. “The industry demand is deteriorating both significantly and quickly, the companies bet wrong and are now sitting on massive inventories, even larger manufacturing capacities which they spent billions on, and are playing ‘chicken’ with each other seeing who will blink first and cut their production.”
Those companies — American Outdoor Brands, Vista Outdoor and Sturm, Ruger and Co. —  have all reported diminished earnings over the last year, citing a return to seasonal sales patterns after lingering promotions die down, presumably by the year’s end.
As 2018 fast approaches, however, American Outdoor Brands CEO James Debney told investors the

Source: Guns.com