American firearms manufacturer Smith & Wesson (NASDAQ: SWBI) will be reporting results this Thursday after the bell. Here’s what to expect.
Smith & Wesson beat analysts’ revenue expectations by 7.4% last quarter, reporting revenues of $85.08 million, down 3.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Smith & Wesson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Smith & Wesson’s revenue to decline 4.6% year on year to $123.7 million, a reversal from the 3.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Smith & Wesson has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 7.4% on average.
Looking at Smith & Wesson’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Harley-Davidson delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 2.8%, and Malibu Boats reported revenues up 13.5%, topping estimates by 4.3%. Harley-Davidson traded down 6.2% following the results while Malibu Boats was also down 14.4%.
Read our full analysis of Harley-Davidson’s results here and Malibu Boats’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 3.3% on average over the last month. Smith & Wesson is down 4.6% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $8.77).
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