Smith & Wesson Can't Meet Demand
SPRINGFIELD, Mass. (AP) — Gun manufacturer Smith & Wesson Holding Corp. on Tuesday reported record sales for its fourth quarter and full fiscal year amid a surge in demand for its firearms.
"Although the company continued to increase its production capacity, it was unable to meet the ongoing demand across most of its firearm product lines, resulting in additional growth in the company's order backlog," the Springfield, Mass., company said in its earnings report.
Smith & Wesson reported net income of $25.2 million in its fourth quarter that ended April 30, double last year's $12.5 million quarterly profit. Earnings were 38 cents a share, up from the 19 cents a share earned in the fourth quarter of the prior year.
Revenue for the quarter was $178.7 million, a record and up 37.6 percent from the same period last year.
Smith & Wesson's net income from continuing operations amounted to 44 cents a share. Analysts were expecting adjusted earnings of 43 cents a share on $179 million in revenue, according to FactSet.
Its full-year profit rose to $78.7 million, nearly five times the prior year's $16.1 million. Annual sales were $587.5 million — also a record — and up 42.6 percent from the prior year.
After a spate of mass shootings, including one at an elementary school in Newtown, Conn., in December, Americans have been buying more guns and ammunition fearing further government restrictions.
CEO James Debney attributed Smith & Wesson's strong performance to "solid marketing, innovative new products, disciplined manufacturing execution, and strict financial management."
Smith & Wesson said it is expecting earnings from continuing operations of between 34 and 37 cents a share in the current fiscal first quarter on revenue between $162 million and $167 million. The outlook includes estimated expenses of about 6 cents a share for bond and stock repurchases. Analysts were forecasting adjusted earnings of 30 cents a share on $141 million in revenue.
The company's stock slipped 3 cents to $9.96 in extended trading following the release of the earnings report. It had risen 3.7 percent during Tuesday's regular trading session and is up 45 percent in the past year.