Smith & Wesson crushes earnings, as Americans keep buying guns like crazy (SWHC, RGR)

smith & wesson gun rifle
Burton tries out an M&P 15-22 Sport rifle at the Smith &
Wesson booth at the 2016 National Shooting Sports Foundation’s
Shooting, Hunting, Outdoor Trade (SHOT) Show.

Ethan Miller/Getty

Smith & Wesson on Thursday reported fiscal-first-quarter
earnings that crushed analysts’ expectations, and the
company raised its full-year guidance. 

The gunmaker posted adjusted earnings per share of $0.62 and
revenue totaling $207 million. Analysts had forecast that it
earned $0.54 in adjusted EPS, and revenue of $198.3 million,
according to Bloomberg. 

“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,” said CEO James Debney in the

The company said it expects fiscal-2017 EPS in a range of
$2.38 to $2.48, up from a range of $1.83 to $1.03,
and topping analysts’ projection for

Smith & Wesson was expected to report better-than-expected
results on higher gun sales following increased talk about gun
control. The mass shooting at a nightclub in Orlando in June, the
deadliest in US history, helped
stoke concerns
that guns may be harder to buy if tougher laws
are passed. 

Sturm, Ruger & Co. CEO Michael Fifer said during
that gunmaker’s earnings call that he hoped
“freedom-loving Americans” took action in
support of the Second Amendment
, which grants the right to
bear arms. The company pledged to donate $2 to the National Rifle
Association for every gun it sold. 

Smith & Wesson shares have gained 33% this year. They
rose 3% after-hours.

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