Smith & Wesson Brands (NASDAQ:SWBI) Announces Earnings Results, Beats Estimates By $0.12 EPS

Smith & Wesson Brands (NASDAQ:SWBI) announced its quarterly earnings data on Thursday. The company reported $0.06 EPS for the quarter, beating the consensus estimate of ($0.06) by $0.12, Zacks reports. The company had revenue of $129.37 million for the quarter, compared to the consensus estimate of $98.70 million. Smith & Wesson Brands had a net margin of 3.53% and a return on equity of 5.01%. Smith & Wesson Brands’s revenue for the quarter was up 32.3% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.08) EPS.

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

• Strong first-quarter performance: Net sales rose 32.3% year over year to $112.6 million, adjusted EBITDA increased 86%, and EPS improved to $0.06 from a $0.08 loss.
• Shipments grew nearly 20%, outpacing the 7.7% increase in adjusted NICS, with the company reporting share gains in both handguns and long guns. Growth was led by polymer pistols, MSRs, and 1854 lever-action rifles, whose shipments doubled year over year.
• Management expects second-quarter sales to be approximately 10% above last year and reiterated full-year revenue growth guidance of 5%–7%, citing healthy channel inventories, sustained demand, and momentum in the professional and international channels.
• Gross margin increased to 28.7%, helped substantially by $2.9 million of tariff refunds, while higher supplier, labor, volume-related, legal, and advertising costs pressured profitability. The company expects second-quarter gross margin to improve 200–300 basis points year over year, but operating expenses are expected to rise 10%–15% from Q1.
• Capital spending is expected to reach $45 million–$50 million for the year, roughly $25 million above the historical run rate, as Smith & Wesson invests in its Springfield facility and advanced manufacturing initiatives; the company also used $8.8 million of operating cash in Q1.

Smith & Wesson Brands Trading Down 4.0%

Smith & Wesson Brands stock opened at $12.27 on Friday. Smith & Wesson Brands has a one year low of $8.01 and a one year high of $17.56. The business’s fifty day moving average is $14.46 and its 200 day moving average is $14.42. The stock has a market capitalization of $550.19 million, a PE ratio of 30.68 and a beta of 0.86. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.20 and a quick ratio of 1.13.

Smith & Wesson Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 17th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $0.52 annualized dividend and a dividend yield of 4.2%. Smith & Wesson Brands’s dividend payout ratio (DPR) is 130.00%.

Hedge Funds Weigh In On Smith & Wesson Brands

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Millennium Management LLC bought a new stake in shares of Smith & Wesson Brands in the third quarter worth approximately $7,558,000. Two Sigma Investments LP raised its holdings in shares of Smith & Wesson Brands by 166.1% during the third quarter. Two Sigma Investments LP now owns 753,964 shares of the company’s stock valued at $7,411,000 after purchasing an additional 470,602 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in Smith & Wesson Brands by 25.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,311,503 shares of the company’s stock valued at $12,945,000 after purchasing an additional 265,370 shares during the period. Goldman Sachs Group Inc. lifted its position in Smith & Wesson Brands by 41.4% during the first quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company’s stock valued at $6,642,000 after purchasing an additional 208,739 shares during the period. Finally, Trexquant Investment LP boosted its holdings in Smith & Wesson Brands by 159.3% in the fourth quarter. Trexquant Investment LP now owns 318,026 shares of the company’s stock worth $3,139,000 after purchasing an additional 195,390 shares during the last quarter. Institutional investors own 59.33% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on SWBI shares. Weiss Ratings downgraded shares of Smith & Wesson Brands from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Zacks Research raised shares of Smith & Wesson Brands to a “hold” rating in a research report on Tuesday, June 23rd. Finally, Lake Street Capital raised their price target on shares of Smith & Wesson Brands from $14.00 to $16.50 and gave the company a “buy” rating in a research report on Thursday, June 18th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $16.50.

Key Headlines Impacting Smith & Wesson Brands

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Fiscal Q1 net sales rose 32.3% year over year to $112.6 million, while EPS was $0.06 versus a loss of $0.08 in the prior-year quarter. Gross margin was 28.7%. The earnings result also exceeded the reported analyst expectation of a $0.06 loss. Smith & Wesson Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Management projects fiscal 2027 revenue of $550.0 million to $560.5 million, broadly in line with the $551.0 million consensus estimate, and expects second-quarter revenue of approximately $137.1 million versus the $132.2 million consensus. Management also expects fiscal 2027 revenue growth of 5% to 7%, with Q2 sales roughly 10% above the prior year. Smith & Wesson Projects Fiscal 2027 Revenue Growth
• Positive Sentiment: The board declared a quarterly dividend of $0.13 per share, equivalent to $0.52 annually and an indicated yield of approximately 4.2%. Investors of record on September 17 will receive payment on October 1; the stock’s ex-dividend date is September 17.
• Neutral Sentiment: The results show substantial sales growth, but profitability remains modest, with a reported net margin of 3.53% and return on equity of 5.01%. The company’s forward EPS guidance was not provided in the available release, limiting visibility into earnings growth.

About Smith & Wesson Brands

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.