Gunmaker Smith & Wesson tumbles on gloomy outlook, analyst downgrade
06/12/2024 13:45
** Shares of Smith & Wesson Brands SWBI.O tumble 15.3% to over
1-yr low of $11.55 premarket after firearm maker's bleak report
** Co late Thurs said expects current-qtr sales to be approx
10%-15% lower than a year ago
** "Based on the softer demand trends we have seen across the
industry in recent months, we have reduced our expectations for
the second half of fiscal 2025," CFO Deana McPherson said in the
** For fiscal Q2, co posted rev of $129.7 mln, up 4% y/y,
and GAAP EPS of 9 cents
** Avg estimate among 3 analysts was for rev of $133.5 mln
and earnings of 15 cents, per LSEG
** Lake Street Capital Markets downgrades SWBI to 'hold'
from 'buy' and reduces PT by $5 to $13
** "We think we are in a more normalized demand environment
and think single-digit sales growth is more likely next year
with modest margin improvement," Lake Street writes in note
** Through Thurs, SWBI shares had edged up 0.5% in 2024.
Stock's 52-week high is $18.05, hit in Mar
** Gun makers in the past have seen sales increase ahead of
presidential elections amid concerns that potential gun control
legislation could restrict access to firearms
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))