Smith & Wesson crushes earnings expectations, shares spike 5%

Smith & Wesson on Thursday reported profits and revenues that topped analysts forecasts.

The gunmaker posted $0.63 in adjusted earnings per share (EPS) for its fiscal fourth quarter, and revenues totaling $221 million.

Analysts had estimated adjusted EPS of $0.54 and revenues totaling $214.6 million, according to Bloomberg.

Smith & Wesson shares gained 7% on Monday, one day after the shooting at a gay club in Orlando that killed 49 people.

Investors anticipated that calls for tougher gun-control laws would increase current demand for firearms and boost the company’s sales.

President Barack Obama said the shooting was a reminder of how easy it was for a gun to get in the hands of a mass shooter. And Hillary Clinton, the presumptive Democratic presidential nominee, also called for more gun-control measures.

Smith & Wesson shares have fallen about 1% year-to-date. The stock rallied sharply through April and then pared the gains after the FBI reported lower than expected permit activity in March.

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