RGR just reported EPS of $3.60 fully diluted and at a share price of $57 is valued at a PE of 15.4. SWHC, which reports tomorrow, should report EPS of about $.25 for the quarter (vs $.08 a year ago) and have earnings for the cumulative trailing twelve months EPS of $.92. Assuming a PE of 15.4, SWHC should be currently trading at about $14.25,
For tomorrow, expect the guidance for the fiscal year ending 4/30/2013 to be raised from the average $1.02 eps guidance given out by management 3 months ago. . Also, one can expect another (its 3rd) share buyback program.
Watch the backlog. RGR's backlog went from 396,900 units sold to retailers to 1,500,000 in the last quarter.
I wouldn't assume the same valuation of a 15.4 PE due to a lack of dividend helping reinforce investors in RGR compared to SWHC therefore SW will have a fine day but not reaching the equivalent of RGR due to dividend.
SWHC had the option of paying a dividend or a share buy back. They choose the share buyback since they were buying their company stock at less then 5x EBITDA. That makes sense to me. At under 5x EBITDA they should continue buying their own shares. When the stock hits 10X EBITDA as RGR, a dividend makes sense.