Smith & Wesson Brands (NASDAQ:SWBI) Posts Quarterly Earnings Results, Beats Expectations By $0.13 EPS

Smith & Wesson Brands (NASDAQ:SWBI) posted its earnings results on Wednesday. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.23 by $0.13, FiscalAI reports. The company had revenue of $178.39 million during the quarter, compared to the consensus estimate of $155.27 million. Smith & Wesson Brands had a net margin of 2.24% and a return on equity of 3.07%. The firm’s revenue for the quarter was up 26.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.20 earnings per share.

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

• Smith & Wesson reported a strong fourth quarter, with net sales up 26.7%, adjusted EBITDA up 31.7%, and adjusted EPS up nearly 77% year over year.
• The company said it continued to gain market share, with handgun shipments up 23.2% and long gun shipments up 28.7% into the sporting goods channel, while channel inventory remained flat.
• New products were a major growth driver, accounting for about 38% of shipments for both the quarter and the full fiscal year, with management highlighting strong demand for Bodyguard, Shield, M&P, and Model 1854 launches.
• The balance sheet improved materially as the company generated strong cash flow, repaid $60 million of debt during the year, and ended fiscal 2026 with just $20 million of debt.
• Looking ahead to fiscal 2027, management expects mid-single-digit revenue growth and a strong first quarter, but also plans about $20 million of additional capital spending for Springfield capacity expansion.

Smith & Wesson Brands Trading Down 1.1%

NASDAQ:SWBI opened at $13.73 on Thursday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.48 and a current ratio of 4.50. The firm has a market cap of $610.85 million, a price-to-earnings ratio of 59.70 and a beta of 0.90. Smith & Wesson Brands has a 52 week low of $7.73 and a 52 week high of $15.79. The firm has a 50-day moving average price of $14.91 and a two-hundred day moving average price of $12.82.

Smith & Wesson Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be paid a $0.13 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $0.52 annualized dividend and a yield of 3.8%. Smith & Wesson Brands’s dividend payout ratio (DPR) is 226.09%.

Institutional Investors Weigh In On Smith & Wesson Brands

Several institutional investors and hedge funds have recently added to or reduced their stakes in SWBI. Royal Bank of Canada increased its stake in Smith & Wesson Brands by 25.3% in the 1st quarter. Royal Bank of Canada now owns 41,063 shares of the company’s stock valued at $383,000 after buying an additional 8,290 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Smith & Wesson Brands by 41.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company’s stock valued at $6,642,000 after buying an additional 208,739 shares during the last quarter. Creative Planning increased its stake in Smith & Wesson Brands by 136.2% in the 2nd quarter. Creative Planning now owns 29,387 shares of the company’s stock valued at $255,000 after buying an additional 16,943 shares during the last quarter. Legal & General Group Plc increased its stake in Smith & Wesson Brands by 10.3% in the 2nd quarter. Legal & General Group Plc now owns 47,630 shares of the company’s stock valued at $413,000 after buying an additional 4,431 shares during the last quarter. Finally, Quantbot Technologies LP purchased a new stake in Smith & Wesson Brands in the 2nd quarter valued at about $190,000. Hedge funds and other institutional investors own 59.33% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently commented on SWBI. Lake Street Capital boosted their target price on shares of Smith & Wesson Brands from $11.00 to $14.00 and gave the stock a “buy” rating in a research report on Friday, March 6th. Wall Street Zen raised shares of Smith & Wesson Brands from a “hold” rating to a “strong-buy” rating in a research report on Sunday, March 8th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Smith & Wesson Brands in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $14.00.

About Smith & Wesson Brands

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.