Smith & Wesson's blowout quarter lifts profit, dividend and stock
Q1 sales jump 32%, swing to profit Smith & Wesson's fiscal first-quarter sales rose 32% to $112.6 million and it earned $0.06 a share versus a year-ago loss, beating the expected loss of $0.06. That surprise profit is the main reason the stock jumped.
The earnings beat is the core new event driving the stock.
More guns sold at higher prices Unit shipments rose nearly 20%, faster than the 7.7% rise in background checks, and new products were 35% of shipments. Handgun prices rose about 9% and long-gun prices 18%, lifting gross margin to 28.7%.
Shows demand and pricing power behind the revenue beat.
First dividend authorized The board approved a quarterly dividend of $0.13 a share, payable October 1. A new payout signals confidence in cash flow and can attract income-focused investors, supporting the stock.
A new capital return policy is a fresh positive for shareholders.
Cautions: one-off tariff refund, weak guidance Most of the margin gain came from a $2.9 million tariff refund management calls non-recurring, and full-year revenue guidance is only 5% to 7% growth. Inventory also rose, so the quarter's pace may not last.
Gives the fair counterweight to the strong quarter.