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Smith & Wesson's 4Q Profit Soars On Sales

Fri, 06/29/2012 - 11:50am
The Associated Press

SPRINGFIELD, Mass. (AP) — Smith & Wesson Holding Corp.'s shares jumped in after-hours trading Thursday after the firearm maker said its fourth-quarter net income soared on strong sales, particularly of its polymer pistols and modern sporting rifles, and it gave forecasts that beat expectations.

Its shares soared more than 15 percent after hours on the news.

The company earned $12.5 million, or 19 cents per share, for the quarter that ended April 30. That's up from $1.1 million, or 2 cents per share, in the same quarter last year. From continuing operations, the company said it earned 27 cents per share, versus 7 cents per share last year.

Analysts polled by FactSet anticipated earnings from continuing operations of 17 cents per share on revenue of $128.6 million. Smith & Wesson's total quarterly revenue grew 28 percent to $129.8 million from $101.7 million.

During the year, Smith & Wesson, based in Springfield, Mass., paid down $30 million of debt and increased its manufacturing capabilities. It said that growth helped lay a solid foundation for the new fiscal year.

In the current quarter, it expects to earn 16 cents to 19 cents per share on revenue of $125 million to $130 million. Analysts are anticipating earnings of 12 cents per share on revenue of $112.6 million for the period.

For the 2013 fiscal year, it forecast earnings between 60 cents per share and 65 cents per share on revenue between $485 million and $505 million. Analysts are expecting the company to earn 50 cents on revenue of $466 million.

For fiscal 2012, the company reported net income of $16.1 million, or 25 cents per share, compared with a loss of $82.8 million, or $1.30 per share, last year. From continuing operations, it earned 41 cents per share, compared with 13 cents per share last year. Its revenue rose to $412 million from $342.2 million last year.

The stock jumped $1.04 to $7.93 after hours; it had ended regular trading down 15 cents at $6.89.

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