2023-03-09 16:54:04 ET
Smith & Wesson Brands ( NASDAQ: SWBI ) stock rose sharply in Thursday’s extended session after edging past Q3 earnings estimates
The Springfield, Massachusetts-based posted $0.25 in earnings per share for the fiscal third quarter, beating expectations by $0.02. Meanwhile, a 27.4% drop in revenue from the prior year to $129.04M was a smaller decline than analysts had anticipated .
“We are extremely pleased with our third quarter performance, with our top-line increasing sequentially, and above the comparable pre-pandemic quarter in fiscal 2020, and our bottom-line results continuing to show dramatic improvement over pre-pandemic levels,” CEO Mark Smith said. “Our results reflect the work our team has done to capitalize on the opportunity afforded by our flexible manufacturing model during the surge to fundamentally transform our business model as it relates to product mix and pricing. Further, the firearm market remains healthy, with strong participation growth in recent years on top of a large and loyal base of core consumers, all of which leads to a compelling view of the future for a leading brand like Smith & Wesson."
CFO Deana McPherson added that pricing actions helped offset inflationary pressures and maintain profitability. Gross margin fell sharply year over year, decreasing 720 basis points to 32.4%. However, this level was still 440 basis points above the comparable period in 2023. Additionally, McPherson said the company’s expected relocation to Tennessee is expected to benefit the company in the long term despite some increased costs in the near term.
Shares of Smith & Wesson Brands ( SWBI ) rose 5% in after hours trading on Thursday.
Read more on the details of the quarter .
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Smith & Wesson stock shoots up on strong firearm demand