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Last Update: 06-Mar-13 07:52 ET
Smith and Wesson shares little changed following beat on earnings per share
Smith & Wesson (SWHC 10.22 +0.00) reported third quarter earnings of $0.26 per share, excluding non-recurring items, $0.03 better than the Capital IQ consensus of $0.23, while revenues rose 38.8% year/year to $136.2 million versus the $133.68 million consensus. Gross profit for the third quarter was $50.1 million, or 36.8% of net sales, compared with gross profit of $30.0 million, or 30.6% of net sales, for the comparable quarter last year. Co issues upside guidance for Q4, sees EPS of $0.38-0.40, excluding non-recurring items, vs. $0.30 Capital IQ Consensus Estimate; sees Q4 revs of $165-170 mln vs. $155.06 mln Capital IQ Consensus Estimate. "Our success in the third quarter was highlighted by significant year-over-year improvements in net sales, margin expansion, and bottom line profitability as we successfully executed our growth strategy, which is underpinned with a focus on firearms. Performance gains were driven by continued robust consumer demand for firearms as well as increased sales of our M&P? polymer pistols and modern sporting rifles. Based on incremental improvements in expanding our production capacity, which will be further deployed in the fourth quarter, we are increasing our financial guidance for the full fiscal year 2013."
