Firearms maker Smith & Wesson's Q2 sales slightly beat expectations

Reuters12-05
Firearms maker Smith & Wesson's <a href="https://laohu8.com/S/QTWO">Q2</a> sales slightly beat expectations

Overview

  • Smith & Wesson fiscal Q2 net sales slightly beat analyst expectations

  • Adjusted EPS for fiscal Q2 beats consensus, reflecting operational efficiency

  • Company reports strong operating cash flow of $27.3 mln, up significantly from last year

Outlook

  • Smith & Wesson expects Q3 sales to rise 8-10% over Q3 fiscal 2025

  • Company sees no significant impact from channel inventory on Q3 sales

Result Drivers

  • INNOVATION STRATEGY - Co attributes profitability to innovation strategy and disciplined operations management

  • NEW PRODUCTS - New products accounted for 38.7% of sales, driving performance despite overall sales decline

  • INVENTORY MANAGEMENT - Efficient inventory management led to reduced distributor inventory and improved cash flow

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Slight Beat*

$124.70 mln

$123.73 mln (3 Analysts)

Q2 Adjusted EPS

Beat

$0.04

$0.02 (2 Analysts)

Q2 EPS

$0.04

Q2 Net Income

$1.90 mln

Q2 Gross Margin

24.30%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for Smith & Wesson Brands Inc is $11.00, about 23.9% above its December 3 closing price of $8.88

Press Release: ID:nNFC9tnj8P

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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