Smith & Wesson Brands (NASDAQ:SWBI) Posts Earnings Results, Beats Expectations By $0.13 EPS

Smith & Wesson Brands (NASDAQ:SWBI) announced its earnings results on Wednesday. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.13, FiscalAI reports. Smith & Wesson Brands had a net margin of 3.53% and a return on equity of 5.06%. The business had revenue of $178.39 million during the quarter, compared to the consensus estimate of $155.27 million. During the same quarter in the prior year, the firm earned $0.20 earnings per share. The business’s quarterly revenue was up 26.7% compared to the same quarter last year.

Here are the key takeaways from Smith & Wesson Brands’ conference call:

• Smith & Wesson reported a strong fourth quarter, with net sales up 26.7%, adjusted EBITDA up 31.7%, and adjusted EPS up nearly 77% year over year.
• The company said it continued to gain market share, with handgun shipments up 23.2% and long gun shipments up 28.7% into the sporting goods channel, while channel inventory remained flat.
• New products were a major growth driver, accounting for about 38% of shipments for both the quarter and the full fiscal year, with management highlighting strong demand for Bodyguard, Shield, M&P, and Model 1854 launches.
• The balance sheet improved materially as the company generated strong cash flow, repaid $60 million of debt during the year, and ended fiscal 2026 with just $20 million of debt.
• Looking ahead to fiscal 2027, management expects mid-single-digit revenue growth and a strong first quarter, but also plans about $20 million of additional capital spending for Springfield capacity expansion.

Smith & Wesson Brands Stock Performance

NASDAQ SWBI opened at $16.08 on Friday. The stock has a market capitalization of $715.40 million, a price-to-earnings ratio of 40.20 and a beta of 0.90. The business’s 50 day moving average is $14.93 and its two-hundred day moving average is $12.87. Smith & Wesson Brands has a 12-month low of $7.73 and a 12-month high of $17.56. The company has a current ratio of 4.50, a quick ratio of 1.48 and a debt-to-equity ratio of 0.29.

Smith & Wesson Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be given a dividend of $0.13 per share. The ex-dividend date is Wednesday, July 1st. This represents a $0.52 annualized dividend and a yield of 3.2%. Smith & Wesson Brands’s payout ratio is presently 226.09%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Lake Street Capital increased their price objective on Smith & Wesson Brands from $14.00 to $16.50 and gave the stock a “buy” rating in a research report on Thursday. Wall Street Zen raised Smith & Wesson Brands from a “hold” rating to a “strong-buy” rating in a report on Sunday, March 8th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Smith & Wesson Brands in a research report on Friday, March 27th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $16.50.

Key Smith & Wesson Brands News

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Smith & Wesson topped quarterly expectations, reporting EPS of $0.36 versus $0.23 expected and revenue of $178.4 million versus $155.3 million expected, helping fuel the stock’s move higher. Earnings report and conference call
• Positive Sentiment: The company raised confidence in the outlook by saying FY 2027 revenue should grow in the mid-single digits, while strong handgun sales supported higher profit in the latest quarter. Wall Street Journal article
• Positive Sentiment: Lake Street Capital lifted its price target to $16.50 from $14.00 and kept a buy rating, while unusually heavy call-option activity suggested traders are positioning for further upside. Benzinga coverage
• Positive Sentiment: Smith & Wesson declared a quarterly dividend of $0.13 per share, which may appeal to income-focused investors. Dividend announcement
• Neutral Sentiment: The company disclosed a new technology-related risk tied to generative AI tools, which could create legal and operational issues but is not an immediate earnings driver. AI risk disclosure

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Virtu Financial LLC acquired a new position in shares of Smith & Wesson Brands during the 4th quarter worth $153,000. Invesco Ltd. lifted its stake in shares of Smith & Wesson Brands by 2.2% in the fourth quarter. Invesco Ltd. now owns 137,004 shares of the company’s stock valued at $1,352,000 after purchasing an additional 2,983 shares during the period. Mercer Global Advisors Inc. ADV lifted its stake in shares of Smith & Wesson Brands by 49.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 29,793 shares of the company’s stock valued at $294,000 after purchasing an additional 9,835 shares during the period. Oxford Asset Management LLP acquired a new stake in shares of Smith & Wesson Brands during the 4th quarter valued at approximately $140,000. Finally, Engineers Gate Manager LP purchased a new stake in shares of Smith & Wesson Brands during the 4th quarter worth approximately $439,000. Hedge funds and other institutional investors own 59.33% of the company’s stock.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.