Smith & Wesson stock soars after favorable earnings report
By Christen Smith
Investors flocked to Smith & Wesson last week after the gun maker’s parent company, American Outdoor Brands, reported an increase in earnings, spiking stock prices by nearly half.
Shares for AOBC traded at $14.03 by the end of day Friday, a 43.6 increase in the 24 hours following the company’s report of 7 percent revenue growth during its first quarter ending July 31.
The upswing follows conservative guidance issued from the company over the summer as the results of its “challenging” fiscal year — which ended April 30 — became public. Now, instead of a forecast of tepid gun sales for the remainder of the year, top executives sound more optimistic — even revising its full-year sales projections upwards to $630 million.
“We are pleased with our operational and financial results for the first quarter,” said Chief Executive Officer James Debney in a news release Thursday. “Our increased profitability was driven by consumer preference for our new products, reduced promotions versus the prior year, and solid progress on a number of our expense reduction initiatives.”
Revenue for the company’s gun sales increased 5.9 percent. Debney told investors Thursday long gun sales spiked nearly 38 percent. The outdoors segment — which includes brands such as Bubba Blade, Old