Smith & Wesson Brands Inc. shares fell 3% in the extended session Thursday following a rally in the regular session and after the gun maker reported quarterly profit and revenue above Wall Street expectations. Smith & Wesson said it earned $36.1 million, or 79 cents a share, in the fiscal fourth quarter, compared with $89.2 million, or $1.70 a share, in the year-ago quarter. Adjusted for one-time items, the company earned 82 cents a share. Revenue fell 44% to $181.3 million, the company said. Sales dropped 6% as compared with the fourth quarter of fiscal 2020, Smith & Wesson said. Analysts polled by FactSet expected the company to report earnings of 57 cents a share on revenue of $168 million. “Although we expect inflationary pressures to persist and for firearm market conditions to return to more normalized levels in fiscal 2023, we are confident in our flexible manufacturing model and expect to benefit from the pricing and product portfolio adjustments that we made during the surge,” Chief Executive Mark Smith said in a statement. The company remains “well positioned for long-term growth,” Smith said. In the same press release, the gun maker said its board of directors has authorized a 25% increase in the company’s dividend to 10 cents a share, payable to stockholders of record as of July 7 on July 21. Shares of Smith & Wesson ended the regular trading day up 9.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Smith & Wesson beats Wall Street expectations, board OKs 25% dividend increase
Latest posts by Market Watch (see all)