Firearm company Smith & Wesson Brands (NASDAQ:SWBI) reported third-quarter financial results after market close Thursday. Here are the key highlights.
• Smith & Wesson Brands stock is approaching key resistance levels. Why did SWBI hit a new high?
Smith & Wesson Q3 Earnings
Smith & Wesson reported third-quarter sales of $135.71 million, up 17.1% year-over-year. The sales total beat a Street consensus estimate of $125.59 million, according to data from Benzinga Pro.
The company reported eight cents in earnings per share, beating a Street consensus estimate of five cents per share.
"We were very pleased with our third quarter results, which demonstrated continued market share growth — while simultaneously maintaining resiliency in our pricing power and profitability," Smith & Wesson CEO Mark Smith.
Smith said handgun results in the quarter were "exceptional" with unit shipments for the sporting goods channel up 28% year-over-year.
"Our momentum is strong and building, our brand and product assortment are driving continued healthy profitability."
What's Next for Smith & Wesson
The company is guiding for fourth-quarter sales to be up 10% to 12% year-over-year.
The company reported fourth-quarter sales of $140.80 million, which would put guidance in a range of $154.88 million to $168.96 million, versus a Street forecast of $142.25 million.
"Having focused on driving inventory levels down during the last 12 months, we are now turning our focus to increasing production to meet market demand, which should continue to have a positive impact on margins," Smith & Wesson Chief Financial Officer Deana McPherson.
McPherson said product assortment, new products and the strength of the company's brands are "helping us drive growth and take share in an otherwise stable market."
Smith & Wesson Stock Price Action
Smith & Wesson shares are up 11.20% to $13.11 in after-hours trading Thursday versus a 52-week trading range of $7.73 to $12.15.
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