Gunmaker Smith & Wesson is down big after last night saying its sales in the upcoming year will decline.
In morning trade, shares are down nearly 10%.
For its fiscal-year 2015, the company said sales are expected to be between $US585 million and $US600 million. Analysts were expecting sales of more than $US620 million.
For its just-completed fiscal year, the company reported record sales of $US626.6 million.
Smith & Wesson also reported fiscal year profit of $US1.49 per share, and said that next year it should earn between $US1.30 and $US1.40 per share.
In the fourth quarter, Smith & Wesson reported profit of $US25 million, or $US0.44 per share, on revenue of $US170.4 million.
This is the second straight quarter the stock is having a huge swing after its earnings. In March, shares surged more than 16% after the company’s third quarter results beat expectations and the company raised its outlook.
Smith & Wesson reiterated on its conference call that longer-term, it plans to grow 8% to 10% and said on the call that it believes the firearms industry is, “in the midst of a long-term and sustainable growth trend.”
In 2013, total firearm background checks hit a record high, according to data from the FBI.
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