June 17, 2021- 7:36 p.m.
Smith & Wesson Brands, Inc. reported better-than-expected results for its fiscal fourth quarter after the bell Thursday, helped by an ongoing surge in demand for firearms.
The company said revenue in the period surged 67% to $322.9 million vs. $193 million in the same period last year. Non-GAAP net income rose to $1.71 a share, vs. 50 cents a share in the same period a year ago.
Analysts were expecting the company to make $1.08 a share, on sales of $259.8 million, based on a FactSet survey of five analysts.
The stock has risen 30.2% since the company last reported earnings on March 4.
“During the past fiscal year, the U.S. firearms market experienced record growth of 42%,” Said Mark Smith, president and CEO in a statement. “Shipments from Smith & Wesson far surpassed the industry, growing by 70%. Strong consumer preference for our products combined with our ability to rapidly react to the increased demand has placed us in a clear leadership position as we enter into our first full fiscal year as a standalone pure-play firearms company.”
The company’s board approved a $50 million share buyback plan and raised its dividend 60% to 8 cents a share payable July 6 to shareholders of record on July 1.
Shares of Smith & Wesson Brands rose 67 cents, or 3.4%, to $20.59 in after-hours trading on Thursday. In the regular session the stock fell 3.1%.
Shares of rival gunmaker Sturm, Ruger & Co. Inc. traded lower in after-hours action, after losing 1% in the regular trading session.
Source:Â TheStreet.
