Leading firearms manufacturer
Smith & Wesson Holding Corporation
) reported adjusted earnings of 28 cents per share in the first
quarter of fiscal 2013, compared with 4 cents per share in the
STURM RUGER&CO (RGR): Free Stock Analysis
SMITH & WESSON (SWHC): Free Stock Analysis
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The results of the company were 55.5% higher than the Zacks
Consensus Estimate of 18 cents.
The company reported net sales of $136 million in the relevant
quarter, up 48.3% from $91.7 million in the year-earlier period.
The year-over-year growth was driven by strong sales of the M&P
Net sales in the reported quarter were higher than the Zacks
Consensus forecast of $129 million.
Gross profit grew to 37.7% of net sales from 29% in the first
quarter of the previous fiscal. Cost reduction initiatives boosted
margins, as operating expenses as a percentage of revenue declined
by 816 basis points year over year.
The company continues to invest consistently in research and
development (R&D) activities to develop new products. In the
first quarter of fiscal 2013, the company spent $1.1 million on
R&D versus $1.3 million in the prior-year quarter.
The rise in revenue and reduction in operating expenses benefited
the company's margins. Operating income clocked $31.3 million
versus $5.5 million in the year-earlier period, increasing an
Smith & Wesson sat on a firearm backlog of $392.4 million,
increasing 163.7% year over year from $243.6 million at end of the
first quarter last year.
Cash and cash equivalents of Smith & Wesson as of July 31,
2012, were $60.5 million versus $56.7 million as of April 30, 2012.
Cash provided by/(used in) operating activities was $9.2 million in
the first quarter of fiscal 2013 versus ($15.6) million in the
first quarter of fiscal 2012.
The company expects its total revenue in the second quarter of
fiscal 2013 in the range of $130 million to $135 million,
reflecting 40% year-over-year growth. The revenue momentum is
expected to be driven by the company's strong manufacturing
capacity. GAAP earnings per share in the second quarter of
fiscal 2013 are expected between 19 cents and 21 cents.
Total revenue for fiscal 2013 is expected in the range of $530
million to $540 million, reflecting 30% year-over-year growth. GAAP
earnings per share in fiscal 2013 are expected between 85 cents and
Smith & Wesson retains a Zacks #3 Rank which translates into a
short-term Hold rating. The company competes with
Sturm, Ruger & Company Inc.
Based in Springfield, Massachusetts, Smith & Wesson Holding
Corporation was founded in 1852. The company manufactures, designs
and supplies a large variety of fire arms and related items to its
worldwide customers. The company has 1,346 full time
employees and a market cap of $0.59 billion.