Shares of Smith & Wesson Brands Inc. soared over 8% in after-hours trading on Thursday following the release of their fiscal 2024 first-quarter results. The renowned gun manufacturer reported a remarkable 35% surge in sales during this period and expressed optimism for a strong performance in the upcoming fall season.
In Q1, Smith & Wesson generated a net income of $3.1 million, equivalent to earnings per share of 7 cents. This represents a slight decline compared to the year-ago figure of $3.3 million, also at 7 cents per share. However, when adjusted for one-time items, the company’s earnings per share jumped to 13 cents.
The company’s sales witnessed a significant rise, reaching $114.2 million for the first quarter. This exceeded analysts’ expectations, as experts surveyed by FactSet had predicted adjusted earnings per share of 9 cents on $101 million in sales.
Chief Executive Mark Smith expressed his satisfaction with the performance, stating that product inventory remained stable even during the seasonally slower summer period. This indicates strong demand and a healthy shipment pull-through from both distributors and retailers. Smith also highlighted that as they enter the traditionally busier fall season, their lean channel inventories position them well to capitalize on the expected market surge.
Despite ending the regular trading day with a 3% decline, Smith & Wesson’s stock experienced a bullish after-hours trend fuelled by the positive quarterly results.