Investing.com -- Shares in Smith & Wesson Holding Corporation (NASDAQ:SWHC) surged nearly 7% on Thursday in after-hours trading after the popular rifle company topped analysts' forecasts with its fourth quarter earnings.
During the fourth quarter of Fiscal Year 2016, the Springfield-based company reported net profits of $35.6 million, up considerably from earnings of $21.9 million over the same period last year. Smith & Wesson also reported adjusted earnings excluding one-time items of $37.4 million or 0.66 per share, up from $24.9 million or 0.54 per share over its fourth quarter from last year. At the same time, the company finished with sales of $221.1 million, up 22% on a year-over-year basis.
It came days after Sunday's massacre at a nightclub in Orlando, the worst mass-shooting in U.S. history. The attack claimed the lives of 49 people and wounded 50 others. On Thursday, U.S. president Barack Obama offered condolences to family members of victims of the massacre in Florida. Omar Mateen, the suspect in Sunday's massacre, reportedly pledged allegiance to the Islamic State before he was killed in a gunfire with police.
"We will continue to be relentless against ISIL and Al Qaeda," Obama said.
Earlier this week, U.S. Republican presumptive presidential frontrunner Donald Trump said on his Twitter account that he will be meeting with the NRA about not allowing members of the Terror Watch and No Fly lists from buying guns. On Thursday morning, Republican leaders in the Senate agreed to hold a vote on new gun control measures following a marathon 15-hour filibuster.
Smith & Wesson shares have surged more than 350% since Obama became president in January, 2009. Shares in weapon companies typically rise exponentially amid worries among Second Amendment advocates that fresh gun control laws could be imminent.
Smith & Wesson CEO James Debney credited other factors for his company's strong quarter.
"Our solid fourth quarter and full year performance further validates our vision, which is to become the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast. We continued to successfully execute on our long-term strategy, while delivering financial and operational results that set a number of new company records," Debney said. "In our firearms division, we made several important new product introductions and continued to leverage our flexible manufacturing model, allowing us to benefit from strong consumer demand. In our first full year of accessories revenue, we expanded our product portfolio organically as well as through a targeted acquisition, delivering double-digit top line revenue growth."
Moving forward, Smith & Wesson expects to report adjusted earnings per share of 0.49-0.53 for the current quarter ending on July 31.
Shares in Smith & Wesson surged 1.52 or 6.99% to 23.27 in after-hours.
Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com apps for Android and iOS! http://glocdn.investing.com/news/LYNXMPEB5C0E0_M.jpg