PREVIEW: Smith & Wesson dips ahead of report

Sturm, Ruger & Company

09/03/2023 18:35

** Shares of Smith & Wesson Brands Inc  SWBI.N  down 1.55% ahead
of the gun maker's qtrly report after the bell
    ** In its previous results in early December, SWBI reported
a steep drop in sales and blamed an "ongoing inventory
correction", as well as promotions by competitors. SWBI tumbled
~20% in following session and remains down ~10% from before that
report
    ** Rival Sturm Ruger & Co  RGR.N  on Feb. 22 reported an 11%
drop in its fourth-qtr net sales 
    ** Gun sales to U.S. consumers surged in 2020 and 2021 amid
the coronavirus pandemic and worries about civil unrest, but
have since fallen off sharply 
    ** Refinitiv data shows estimates from just 3 analysts for
SWBI, and their January fiscal qtr estimates have not been
updated since early December. On avg, they expect rev down 29.5%
to $125 mln and adjusted EPS of $0.22 vs $0.69 yr-ago, per
Refinitiv 

 (Reporting by Noel Randewich)
 ((noel.randewich@tr.com; Twitter: @randewich;))