Smith & Wesson Beats Q2 Estimates, Disappoints On Outlook
Smith & Wesson Holding Corp (NASDAQ: SWHC) announced financial results Thursday for the fiscal 2015 second quarter ended October 31, 2014. Net sales for the second quarter were $108.4 million, above estimates of $105.79 million and a decrease of 22.1 percent from net sales of $139.3 million for the second quarter last year.
The expected decrease was a result of lower consumer demand and competitors' excess inventory at distributor and retailer locations, which followed an earlier surge period when consumers purchased firearms in anticipation of possible additional restrictive regulations.
Income from continuing operations for the second quarter was $5.1 million, or $0.09 per diluted share, above estimates of $0.07 and below the $17.1 million, or $0.28 per diluted share, reported for the second quarter last year.
James Debney, Smith & Wesson President and Chief Executive Officer, stated, "Results for the second quarter met our expectations as we continued to navigate the consumer firearm market as it returns to a more normalized environment...Unfortunately, we expect that the excess channel inventory of other manufacturers' products will continue to reduce the open-to-buy for distributors and retailers for our next quarter."
For the third quarter of fiscal 2015, excluding the impact of the BTI acquisition, the company expects net sales to be between $113.0 million and $118.0 million and GAAP earnings per diluted share from continuing operations of between $0.09 and $0.11. Analysts estimated Q3 revenue at $129.94 million with EPS of $0.20.
Smith & Wesson dropped 3 percent afterhours, but was about even with Thursday;s close in Friday's premarket.
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