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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