Moments ago, America’s legendary gun maker Smith & Wesson reported Q1 earnings which, not surprisingly, beat estimate on the top and bottom line, reporting EPS of $0.62, far above the $0.53 expected, and 93% higher compared to a year earlier, on revenue of $207.1 million, also a significant beat to the $198 million expected, not to mention a whopping 40% higher Y/Y.
A delighted James Debney, the CEO of SWHC, said, “We are very pleased with our first quarter results, which exceeded our financial guidance. We believe that higher revenue was driven by strong consumer demand as reflected in adjusted background checks from the National Instant Criminal Background Check System (NICS) as well as our own market share gains. During the quarter, we announced the acquisition of Taylor Brands and Crimson Trace, two accretive acquisitions, making strong in-roads on our strategy to become a leader in the market for shooting, hunting, and rugged outdoor enthusiasts. These acquisitions, which further expand our presence in the markets for outdoor products and accessories, were completed early in the second quarter. Based upon that timing, as well as our performance for the first quarter and our revised outlook for the remainder of fiscal 2017, we are raising our full year revenue and net income guidance.”
More importantly, SWHC just guided to what would be a new all time high in revenue, predicting a sasles range of $220-$230 for the coming quarter (compared to Wall Street estimates of $165.6 million) whose midpoint would make it the highest revenue quarter in company history. We are confident the company will easily surpass this internal guidance, especially thanks to the ongoing attempts by the president to implement gun control executive orders.
This post was published at Zero Hedge on Sep 1, 2016.