Smith & Wesson Posts Upbeat Q4 Results, But Issues Weak Earnings Forecast

reported better-than-expected results for its fiscal fourth quarter. However, the company issued a weak earnings outlook. The Springfield, Massachusetts-based company posted quarterly income from continuing operations of $21.9 million, or $0.40 per share, versus $24.9 million, or $0.44 per share, in the year-ago quarter. Its non-GAAP income from continuing operations slipped to $0.45 per share from $0.47 per share. Its net sales rose 6.2 percent to $181.0 million. However, analysts were expecting earnings of $0.35 per share on revenue of $175.49 million. The average estimate among 18 Estimize users was for earnings of $0.35 per share and revenue of $171.83 million. Firearm division net sales slipped 2.4 percent to $166.4 million. Its non-GAAP adjusted EBITDA from continuing operations came in at $50.8 million for the quarter. James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, said, "We are very pleased with our fiscal 2015 results, particularly our fourth quarter performance. During fiscal 2015, we marked a number of achievements as we remained focused on executing our long-term strategy. We moved further into the hunting and shooting accessories market by acquiring BTI and we strengthened our supply chain with the vertical integration of our principal injection molding supplier." Smith & Wesson expects Q1 earnings of $0.21 to $0.23 per share, on revenue of $140 million to $150 million. Analysts had projected earnings of $0.25 per share on revenue of $145.35 million. For the year ending April 30, 2016, the company projects earnings of $1.02 to $1.07 per share, on revenue of $605 million to $615 million. Analysts expected earnings of $1.07 per share on revenue of $601.77 million. Smith & Wesson shares fell 2.11 percent to $15.76 in the after-hours trading session.