Gunmaker Smith & Wesson just CRUSHED its earnings.
The company earned 27 cents vs. expectations of 18 cents.
Revenue was $136 million vs. estimates of just over $128.7 million.
For next quarter, the company expects earnings of 19 to 21 sents, which is well above estimates of 13 cents.
The stock is going bananas after hours, rising over 20%.
- Net sales from continuing operations for the first quarter were a record $136.0 million, up 48.3% from the first quarter last year. The increase was led by strong sales of the M&P™ product platform.
- Gross profit for the first quarter was $51.3 million, or 37.7% of net sales, compared with gross profit of $26.5 million, or 28.9% of net sales, for the comparable quarter last year. Increased sales volume of polymer firearms positively impacted gross profit margin, resulting in an improvement in manufacturing absorption.
James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, stated, “In the first quarter, we continued to deliver on our commitment to grow our company and improve profitability by focusing on our core firearm business. Our results demonstrate that commitment, evidenced by record achievements in first quarter sales, net income, and earnings per share. Internal capacity increases, enhanced supply chain integration capabilities, and strong execution by our operations team allowed us to exceed our revenue and earnings guidance by capturing incremental sales. Strong sales growth was fuelled by orders for our most popular products. Our newest M&P pistol, the Shield™, continues to be highly favoured and sought after by consumers.”
Jeffrey D. Buchanan, Executive Vice President and Chief Financial Officer, stated, “Our strong fiscal first quarter financial performance reflects successful execution of our strategic plan. Based on our stronger than anticipated first quarter, current consumer orders for our products, and our ability to pull forward certain capacity expansions, we are increasing our full year fiscal 2013 financial guidance. Also of note, in keeping with our focus on our core firearm business, during the quarter we successfully sold the assets of our discontinued operations for just under $10.0 million, including proceeds from a two-year licensing agreement.”
Check out this chart.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.