Smith & Wesson Gross Profit Up 35.5%

Smith & Wesson released the company’s financial results for the quarter ending October 31, 2012.  For the second quarter (fiscal 2013), Smith & Wesson posted a gross profit of more than $48 million, representing an increase of 35.5% over the second quarter of the previous year.

Net sales for the quarter were up $136.6 million, representing an incredible increase of 48% over the quarter from the prior year.  Keep in mind that the quarter ended before President Obama was re-elected in November.

S&W noted in their results that they have increased their production capacity and improved their supply chain efficiency.  Even with these improvements, the company continued to receive more orders than they could produce.  In fact, the order backlog increased 122% compared to the second quarter of 2012.  The total value of the backlog orders is $332.7 million.  I wonder how much that jumped after the election?

Smith & Wesson stated that sales are up across all of their firearms lines, and specifically pointed the the M&P line of handguns and rifles with the Shield being mentioned by name.

What may be seen as a strong sign of the company’s health is that the S&W Board of Directors approved a stock buy-back of up to $20 million.

It looks like the Springfield, MA company is doing very well.  It really is too bad that the current political and economic climate is such that a significant expansion of the company’s manufacturing capacity is not likely in the short term.

Disclaimer

The information presented in this article is NOT intended as financial advice.  I am NOT someone you should ever listen to for financial advice.  I do NOT offer the above information for anything other than entertainment.  If you use this article to assist you in making financial decisions, you are a fool.  If you have interest in making an investment in Smith & Wesson, you should go read the report for yourself, talk to an experience investment advisor and forget you ever were here.  Oh, and I am not a stockholder or otherwise employed by Smith & Wesson.