Smith & Wesson Brands (NASDAQ:SWBI) Issues Earnings Results

Smith & Wesson Brands (NASDAQ:SWBI) released its earnings results on Wednesday. The company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.13, FiscalAI reports. The business had revenue of $178.39 million during the quarter, compared to the consensus estimate of $155.27 million. Smith & Wesson Brands had a net margin of 2.24% and a return on equity of 3.07%. The company’s revenue for the quarter was up 26.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.20 EPS.

Here are the key takeaways from Smith & Wesson Brands’ conference call:

• Smith & Wesson reported a strong fourth quarter, with net sales up 26.7%, adjusted EBITDA up 31.7%, and adjusted EPS up nearly 77% year over year.
• The company said it continued to gain market share, with handgun shipments up 23.2% and long gun shipments up 28.7% into the sporting goods channel, while channel inventory remained flat.
• New products were a major growth driver, accounting for about 38% of shipments for both the quarter and the full fiscal year, with management highlighting strong demand for Bodyguard, Shield, M&P, and Model 1854 launches.
• The balance sheet improved materially as the company generated strong cash flow, repaid $60 million of debt during the year, and ended fiscal 2026 with just $20 million of debt.
• Looking ahead to fiscal 2027, management expects mid-single-digit revenue growth and a strong first quarter, but also plans about $20 million of additional capital spending for Springfield capacity expansion.

Smith & Wesson Brands Stock Down 1.1%

Shares of SWBI stock traded down $0.15 during mid-day trading on Wednesday, reaching $13.73. 1,942,562 shares of the company were exchanged, compared to its average volume of 574,696. Smith & Wesson Brands has a fifty-two week low of $7.73 and a fifty-two week high of $15.79. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.48 and a current ratio of 4.50. The company has a market capitalization of $610.90 million, a P/E ratio of 59.70 and a beta of 0.90. The business’s 50 day simple moving average is $14.93 and its 200 day simple moving average is $12.79.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd bought a new stake in shares of Smith & Wesson Brands in the fourth quarter worth about $30,000. Tower Research Capital LLC TRC lifted its stake in Smith & Wesson Brands by 205.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,240 shares of the company’s stock valued at $54,000 after purchasing an additional 4,200 shares during the last quarter. Public Employees Retirement Association of Colorado bought a new position in shares of Smith & Wesson Brands during the 4th quarter worth approximately $107,000. Dynamic Technology Lab Private Ltd bought a new position in Smith & Wesson Brands during the fourth quarter worth $110,000. Finally, Rafferty Asset Management LLC grew its stake in Smith & Wesson Brands by 12.2% in the 2nd quarter. Rafferty Asset Management LLC now owns 11,403 shares of the company’s stock valued at $99,000 after buying an additional 1,237 shares during the last quarter. Institutional investors and hedge funds own 59.33% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of Smith & Wesson Brands from a “hold” rating to a “strong-buy” rating in a report on Sunday, March 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Smith & Wesson Brands in a research report on Friday, March 27th. Finally, Lake Street Capital raised their price target on Smith & Wesson Brands from $11.00 to $14.00 and gave the company a “buy” rating in a report on Friday, March 6th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $14.00.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.