On Jun 4, 2014, shares of
Smith & Wesson Holding Corporation
) reached a new 52-week high of $16.61, finally closing at $16.38.
The closing price reflects a gain of almost 77.7% over the past
one-year period. Average volume of shares traded over the last
three months stood at 1,633,250.
Smith & Wesson, a Zacks Rank #1 (Strong Buy) stock,
continues to post strong results. The firearm maker has surpassed
our expectation for the last 11 quarters. The company posted
impressive third-quarter fiscal 2014 results with its earnings
outpacing the Zacks Consensus Estimate on the back of higher
The company's total revenues in the quarter increased 7.1% year
over year, mainly thanks to a 29.9% increase in handgun sales. In
January, Smith & Wesson received a healthy response for its
newly launched revolver in the SHOT Show. The company also expects
to receive solid orders for its California-compliant version of
M&P SHIELD and SDVE polymer pistols in the future.
Smith & Wesson ended the third quarter fiscal 2014 with cash
and cash equivalents (including restricted cash) of $45.3 million.
The company's solid financial position helps it to maintain a
systematic share buyback program. In March 2014, the company's
board of directors authorized the repurchase of $30.0 million
shares of its common stock.
The upbeat results allowed the company to revise its revenue and
earnings guidance upwards for fiscal 2014. For fiscal 2014, the
company has increased its revenue guidance range from $610.0-$620.0
million to $615.0-$620.0 million with earnings per share in the
range of $1.39 to $1.42. The Zacks Consensus Estimate for fiscal
2014 is pegged at $1.43 per share.
Other Stock to Consider
Other stocks worth considering in the same industry include
Net 1 Ueps Technologies Inc.
Malibu Boats, Inc.
). While Net 1 Ueps Technologies holds a Zacks Rank #1 (Strong
Buy), Malibu Boats and Brady Corps. carry a Zacks Rank #2
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SMITH & WESSON (SWHC): Free Stock Analysis
MALIBU BOATS-A (MBUU): Free Stock Analysis
BRADY CORP CL A (BRC): Free Stock Analysis
NET 1 UEPS TECH (UEPS): Free Stock Analysis
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