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Smith & Wesson Income and Sales Above Expectations

Smith Wesson LogoSmith & Wesson, one of just a few publicly traded gun companies, released a statement announcing preliminary sales and profit data for the second quarter of fiscal year 2013.  The numbers were a significant improvement compared to the same time one year ago and beat previous expectations for this quarter.

According to S&W, net sales were up $44 million, or about 48%, compared to the second quarter of fiscal year 2012.  Net income is expected to be between $0.23 and $0.24 per diluted share, which is above the company’s prior guidance of $0.19 to $0.21, and well above last year’s $0.01 per share.

Based on current projections, Smith & Wesson expects net sales for the year to reach up to $540 million, which would represent an approximate 30% sales growth compared to the previous year.

Smith & Wesson credits much of the sales growth to increased orders for guns in the M&P line, including the duty pistols, Shield and AR-15 rifles.

There is no way to predict what kinds of gun control schemes will be attempted in the coming year, but all of them will likely have short- and long-term effects on the market.  Short-term, I would expect an increase in sales, while long-term any successful gun-grabbing schemes would make the sales of certain product lines much more limited.

Please note:  I am not a financial advisor; I’m just some guy with a keyboard.  Do not take any of the above as financial or investing advice.  I do not have any business interests in Smith & Wesson, nor have I received any compensation for writing this article.

By Richard Johnson

Richard Johnson is an American author, editor and entrepreneur. He's done a lot of silly things in his life, but quitting police work to follow his passion of writing about guns was one of the smartest things he ever did. He founded this site and continues to manage its operation.