Smith and Wesson Brands Inc (SWBI) stock faced a significant plummet of 22.6% during Friday's pre-market trading session, following the company's disappointing fiscal Q2 2025 earnings report and gloomy outlook for the second half of the fiscal year.
The firearms manufacturer reported adjusted earnings per share of $0.11 for the quarter ended October 31, falling well short of analysts' expectations of $0.17. Moreover, revenue grew a mere 1.7% year-over-year to $127.1 million, missing Wall Street's forecast of $133.5 million.
The weak performance can be attributed to sluggish demand trends across the industry in recent months, according to the company's CFO Deana McPherson. As a result, Smith and Wesson has lowered its expectations for the second half of fiscal 2025, citing a potential 10%-15% decline in sales compared to the previous year.
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