Smith & Wesson falls after Q1 rev miss on soft demand

Smith & Wesson Brands

06/09/2024 11:47

** Smith & Wesson's  SWBI.O  shares down 7.3% premarket to
$13.15, a 6-mth low, after firearm maker's qtrly rev disappoints
    ** Co late Thurs said fiscal Q1 rev fell ~23% yr/yr to $88.3
mln and posted adj loss of 2 cents/sh
    ** Avg estimate of two analysts called for rev of $102.5 mln
and loss of 2 cents/sh, per LSEG data
    ** CEO Mark Smith said overall demand in qtr was softer than
co anticipated, but added "the typically busy firearm demand
season now upon us, we expect to more than offset these
temporary headwinds during the balance of the fiscal year, and
continue to expect top- and bottom-line growth for the full
year"
    ** Co also said its board authorized new $50 mln stock
buyback program
    ** Through Thurs, SWBI gained 4.6% YTD vs Nasdaq's  .IXIC 
14% advance
    ** In the past, gun makers have seen increased sales heading
into presidential elections on concerns potential gun control
legislation could restrict people's future access to firearms

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))