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Tag: Smith & Wesson

  • Smith & Wesson Brands, Inc. (SWBI) Stock Dips Despite Easing of Firearm Regulations Across Three States

    Smith & Wesson Brands, Inc. (SWBI) stock prices were down by 12.63% shortly after market trading commenced on July 2nd, 2021, bringing the price per share down to USD$30.93 early on in the trading day.

    Easing of Firearm Regulations

    July 1st, 2021 saw the company’s stock start to rise following the easing of regulations making it easier to carry guns in public effect. The move came into effect across three different U.S. States: Iowa, Tennessee, and Wyoming. Despite Tennessee already ranking as one of the most violent states in the U.S, the list of states where the minimum age for carrying handguns without a permit is 21 is growing. Texas is set to join the list in September 2021.

    Scope of Market

    The U.S. has seen increased and prolonged buying activity amid the tensions created by the outbreak of the coronavirus pandemic, as well as the civil unrest across the nation over the Summer. March 2020 saw weekly federal background checks top 1 million, serving as a crude indicator of purchases. This is the first time the million mark has been exceeded since the government began tracking background checks in 1998. The record-breaking week saw 1.2 million background checks being conducted. NYT quoted data indicates 20% of all Americans who bought last year identifying as first-time gun owners.

    Quarterly Sales Report

    Quarterly net sales came in at USD$322.9 million in the fourth quarter of the fiscal year 2021, a sizeable 67.3% increase over the USD$193 million reported for the fourth quarter of fiscal 2020. Gross margin for the quarter was reported at 45.1%, up from the 32.2% reported for the prior-year quarter. GAAP net income for the quarter broke records at USD$89.2 million, representing a GAAP net income of USD$1.70 per diluted share.

    Full Year Non-GAAP Net Income

    Full-year non-GAAP net income for 2021 was reported at USD$251.5 million, representing USD$4.54 per diluted share. This is a massive increase over the USD$32.1 million reported for the prior year, which represented a non-GAAP net income of USD$0.58 per diluted share. GAAP to non-GAAP adjustments for income do not include expenses associated with the spin-off of the outdoor products and accessories business, Covi-18 related expenses, and other costs.

    Future Outlook for SWBI

    Armed with the easing of regulations and the strength of its financial reports, SWBI is poised to continue the trajectory of its success over fiscal 2021 into fiscal 2022 and beyond. Investors are hopeful that management will capitalize on the expanded scope of the market available to SWBI.

  • What Raised The SWBI Stock In After Market Trades?

    What Raised The SWBI Stock In After Market Trades?

    The shares of Smith & Wesson Brands Inc. (SWBI) rose 5.27% to trade at $20.97 in after-hours trading. SWBI’s stock closed Thursday’s session at $19.92, down -3.07 percent from Wednesday’s closing price.

    SWBI stock volume remained high at 3.1 million, compared to the average daily volume of 1.38 million within the past 50 days. SWBI shares have risen by 43.13% over the last 12 months, and they have moved down by -4.87% in the past week.

    Over the past three months, the stock has gained 7.62%, while over the past six months, it has shed 15.61%. Further, the company has a current market of $1.05 billion and its outstanding shares stood at 55.14 million. SWBI stock gained traction following the release of its quarterly results.

    How did SWBI perform?

    A leading U.S. manufacturer of firearms and suppressors, Smith & Wesson Brands is known for its wide offering of handguns, long guns, and suppressors. SWBI serves consumers and professionals around the world under the iconic Smith & Wesson, M&P, and Gemtech brands. In addition to forging, machining, and precision plastic injection molding, SWBI also offers manufacturing services.

    Smith & Wesson released its fourth quarter and full year ended April 30, 2021, financial results yesterday.

    Fourth Quarter Fiscal 2021 Financial Highlights:

    • Quarterly Sales of SWBI in the fourth quarter totaled $322.9 million, in comparison with $193.0 million in the same period last year.
    • A gross margin of 45.1% was achieved by SWBI for the quarter, compared to 32.2% in the year-ago quarter.
    • Compared with $20.9 million, or $0.38 per diluted share, in last year’s comparable quarter, SWBI’s GAAP net income for the current quarter was $89.2 million, or $1.70 per diluted share.
    • SWBI’s Net income for the comparable quarter last year was $27.5 million, or $0.50 per diluted share, as compared with $89.6 million this quarter, or $1.71 per diluted share.
    • During the comparable quarter last year, non-GAAP Adjusted EBITDAS of SWBI was $51.6 million, or 26.7% of net sales, while it was $125.6 million or 38.9% of net sales in the reported quarter.

    SWBI’s further plans:

    The SWBI Board approved a new $50 million share repurchase program, in addition to a 60% increase in the quarterly dividend. Dividends will be paid to SWBI stockholders on July 6th for records held on July 1st.