Smith & Wesson Holding Corp (NASDAQ:SWHC) Q1 results above estimates

Posted by Nathan Alexander September 13, 2013 0 Comment 1732 views


Last week, Smith & Wesson Holding Corp (NASDAQ:SWHC) shot way above analysts’ earnings projections. The First-quarter 2014 sales of $171M were a rise of 23% compared to the 2013 Q1 sales. The earnings per share for the quarter stood at $0.40. The company has projected sales of around $165M for this quarter with an EPS of not more than $0.37. It ended up delivering an EPS of $0.40 on revenue of $171M. With these figures, not only did the company beat analyst projections but it topped its own projections as well.

Achievable results

The one thing that investors might want to look out for is that the company has announced that the distribution agreement that it has with Walther will be ending. Though it expects the 2014 full year revenues to be on the higher side they will top the 2013 earnings only by 4%. Having said this, Smith & Wesson Holding Corp (NASDAQ:SWHC) also announced that the $610m revenue looked achievable and the earnings per share will be in the range of $1.32.

The latest guidance put forth by the company’s management says that the expected revenue will be $615M which is a 5% increase from what it was in the last quarter. The point to note is that it has raised its guidance by no more than $6M extra revenue than it achieved in the Q1. This is an indication that Smith & Wesson Holding Corp (NASDAQ:SWHC) does not feel that the boost of sales that it experienced in the Q1 is something that it will be able to sustain for the rest of the fiscal year.

The Thursday session

In Thursday’s trading session, Smith & Wesson Holding Corp (NASDAQ:SWHC) climbed by 1.29%. The company’s shares opened at a price of $10.78 which moved up to an intraday high of $11.08 and then dropped to a close of $10.97.


About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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