Smith & Wesson Brands (NASDAQ:SWBI) Issues Earnings Results

Smith & Wesson Brands (NASDAQ:SWBI) announced its quarterly earnings results on Thursday. The company reported $0.06 EPS for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.12, Zacks reports. The firm had revenue of $129.37 million during the quarter, compared to analysts’ expectations of $98.70 million. Smith & Wesson Brands had a net margin of 4.44% and a return on equity of 6.63%. During the same quarter last year, the company earned ($0.08) earnings per share. The company’s revenue for the quarter was up 32.3% compared to the same quarter last year.

Here are the key takeaways from Smith & Wesson Brands’ conference call:

• Strong first-quarter performance: Net sales rose 32.3% year over year to $112.6 million, adjusted EBITDA increased 86%, and EPS improved to $0.06 from a $0.08 loss.
• Shipments grew nearly 20%, outpacing the 7.7% increase in adjusted NICS, with the company reporting share gains in both handguns and long guns. Growth was led by polymer pistols, MSRs, and 1854 lever-action rifles, whose shipments doubled year over year.
• Management expects second-quarter sales to be approximately 10% above last year and reiterated full-year revenue growth guidance of 5%–7%, citing healthy channel inventories, sustained demand, and momentum in the professional and international channels.
• Gross margin increased to 28.7%, helped substantially by $2.9 million of tariff refunds, while higher supplier, labor, volume-related, legal, and advertising costs pressured profitability. The company expects second-quarter gross margin to improve 200–300 basis points year over year, but operating expenses are expected to rise 10%–15% from Q1.
• Capital spending is expected to reach $45 million–$50 million for the year, roughly $25 million above the historical run rate, as Smith & Wesson invests in its Springfield facility and advanced manufacturing initiatives; the company also used $8.8 million of operating cash in Q1.

Smith & Wesson Brands Price Performance

Shares of Smith & Wesson Brands stock opened at $12.89 on Friday. The stock has a market capitalization of $577.99 million, a price-to-earnings ratio of 23.87 and a beta of 0.86. The firm’s 50-day moving average price is $14.42 and its two-hundred day moving average price is $14.41. The company has a current ratio of 3.20, a quick ratio of 1.13 and a debt-to-equity ratio of 0.14. Smith & Wesson Brands has a 1-year low of $8.05 and a 1-year high of $17.56.

Smith & Wesson Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 17th will be paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Thursday, September 17th. Smith & Wesson Brands’s dividend payout ratio is currently 96.30%.

More Smith & Wesson Brands News

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Strong Q1 results: Fiscal Q1 net sales increased 32.3% year over year to $112.6 million, gross margin was 28.7%, and earnings were $0.06 per share versus a consensus loss estimate of $0.06. The performance was attributed to solid handgun and long-gun demand, new product launches, and a favorable product mix. Smith & Wesson Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Encouraging outlook: Management projected fiscal 2027 revenue of approximately $550.0 million to $560.5 million, broadly in line with analyst expectations, while second-quarter revenue guidance of about $137.1 million exceeded the $132.2 million consensus estimate. The company also indicated that second-quarter sales could be roughly 10% above the prior-year period and forecast full-year revenue growth of 5% to 7%. Smith & Wesson Projects Fiscal 2027 Revenue Growth
• Positive Sentiment: Analyst upgrade and shareholder return: An analyst upgraded SWBI from “hold” to “buy,” citing the earnings beat, improving background-check trends, product innovation, and an attractive valuation. The company also declared a quarterly dividend of $0.13 per share, representing an indicated yield of roughly 4.2% based on the supplied market data. Smith & Wesson Rating Upgrade
• Negative Sentiment: Profitability and balance-sheet concerns remain: Coverage noted that rising spending is weighing on the balance sheet. Despite the sales rebound, SWBI’s reported net margin was only 3.53% and return on equity was 5.01%, suggesting investors will continue monitoring cost control and cash generation. Smith & Wesson Q1 Earnings and Rising Spending

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd bought a new stake in Smith & Wesson Brands during the 4th quarter worth approximately $30,000. Tower Research Capital LLC TRC increased its holdings in Smith & Wesson Brands by 205.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,240 shares of the company’s stock valued at $54,000 after purchasing an additional 4,200 shares in the last quarter. Rafferty Asset Management LLC raised its position in Smith & Wesson Brands by 12.2% in the 2nd quarter. Rafferty Asset Management LLC now owns 11,403 shares of the company’s stock valued at $99,000 after purchasing an additional 1,237 shares during the last quarter. Ameriprise Financial Inc. bought a new position in Smith & Wesson Brands in the 2nd quarter valued at $101,000. Finally, Corient Private Wealth LLC acquired a new position in Smith & Wesson Brands in the second quarter worth $104,000. 59.33% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SWBI. Lake Street Capital increased their target price on Smith & Wesson Brands from $14.00 to $16.50 and gave the stock a “buy” rating in a report on Thursday, June 18th. Zacks Research raised Smith & Wesson Brands to a “hold” rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings cut Smith & Wesson Brands from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Smith & Wesson Brands presently has an average rating of “Hold” and an average target price of $16.50.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.