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Post-Earnings Expert Review - Smith and Wesson Holding

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LONDON, September 4, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Smith & Wesson Holding Corp. (NASDAQ: SWHC). The company featured in the headlines on Tuesday, August 26, 2014 after reporting results for the Q1 FY15 ended July 31, 2014. During Q1 FY15, Smith & Wesson Holding Corp.'s net sales declined $39.2 million, and its income from continuing operations decreased by $0.14 per diluted share from Q1 FY14. Our free coverage report can be accessed at:


Earnings Overview  

During Q1 FY15, Smith & Wesson Holding Corp.'s net sales decreased to $131.87 million, from $171.02 million in the year ago quarter. Analysts from Bloomberg anticipated net sales of $134.00 million for the reported quarter. The decline in net sales was primarily driven by lower sales of long guns, including modern sporting rifles, which drove 87% of the first quarter decline. During Q1 FY15, the company's income from continuing operations narrowed to $14.62 million, or $0.26 per diluted share, from $26.53 million, or $0.40 per diluted share in the prior year quarter. Analysts from Bloomberg were expecting income from continuing operations of $14.20 million, or $0.25 per diluted share in Q1 FY15. Smith & Wesson Holding's gross profit for the reported quarter stood at $49.12 million, or 37.2% of net sales, compared with $72.77 million, or 42.6% of net sales in Q1 FY14. Further, the company's operating income for Q1 FY15 declined to $25.77 million, or 19.5% of net sales, from $48.01 million, or 28.1% of net sales in Q1 FY14. The free research on SWHC can be downloaded as in PDF format at:


Smith & Wesson Holding Corp.'s operating expenses lowered to $23.35 million in Q1 FY15, or 17.7% of net sales, from $24.76 million, or 14.5% of net sales, in the preceding year quarter. The company's non-GAAP EBITDAS from continuing operations for Q1 FY15 stood at $33.64 million, compared with $55.23 million in the last year quarter. During the reported quarter, the company generated operating cash of $10.78 million, compared with $19.01 million in Q1 FY14. Further, during Q1 FY15, Smith & Wesson's internal capital spending totaled $14.6 million, and to acquire the assets of its principal injection molding supplier, the company used an additional $24.1 million of cash. Also, the company repurchased $30.0 million of its common stock during Q1 FY15.

For the upcoming Q2 FY15, the company expects GAAP diluted EPS from continuing operations to be between $0.04 and $0.08. The company forecasts net sales to be in the range of $100.0 million to $110.0 million in Q2 FY15. For fiscal year 2015, the company anticipates GAAP earnings per diluted share from continuing operations in the range of $0.89 to $0.94 and net sales to be between $530.0 million and $540.0 million. The company expects that results within this range would generate a cash balance in excess of $125.0 million at the end of fiscal 2015. Sign up and read the free analyst's notes on SWHC at:


The President and CEO of Smith & Wesson Holding Corp., Mr. James Debney, stated in the press release that Q1 FY15 results met the company's expectations. He added that the company launched a new M&P®22 Compact, a tactical rimfire pistol, during this period. He further stated that to introduce enhanced, integrated laser sighting systems for its popular line of M&P BODYGUARD® handguns, the company has joined forces with Crimson Trace®. During the first quarter, the company completed the acquisition of the assets of its principal injection molding supplier, which enabled it to strengthen its business and contributed favorably to its gross margin and net income. Mr. Debney added that the company believes that its operational and financial strength and flexibility can benefit it in the short term. He further stated that the company will remain focused on its strategy to take handgun market share, and expects the industry to deliver growth over the long run.

Stock Performance  

On Wednesday, August 27, 2014, a day after the earnings release, the fall in net sales and EPS took shares in Smith & Wesson Holding Corp. down by 13.63%, to end the session at $11.32. The stock has further moved down since then, and on the last close, Wednesday, September 03, 2014, it finished 2.62% lower at $10.76. The stock vacillated between $10.68 and $11.05 during the trading session. A total of 3.05 million shares were traded, which was above its three months average volume of 1.61 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 3.24% and 12.31%, respectively. Moreover, the stock has declined 20.24% from the beginning of 2014. Shares in Smith & Wesson Holding Corp. are trading below their 50-day and 200-day moving averages of $13.28 and $13.76, respectively. Further, the stock traded at a PE ratio of 8.09 and has a Relative Strength Index (RSI) of 23.10. Visit Investor-Edge and access the latest research on SWHC at:


Sneak Peek to Corporate Insider Trading  

In the last one month, Smith & Wesson Holding Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on SWHC is available at:


About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.




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