Smith & Wesson Reverses Year-Ago Loss
SPRINGFIELD, Mass.
Smith & Wesson Holding Corp. posted a fiscal second-quarter profit that reversed a year-ago loss as sales rose 49 percent, reflecting a jump in firearm sales and the acquisition of Universal Safety Response.
Net income for the three months ended Oct. 31 was $13.3 million, or 21 cents per share, compared with a loss of $76.2 million, or $1.62 per share, for the second quarter of fiscal 2009. The per-share figures reflect 42 percent more shares outstanding in the current quarter.
The results included an accounting gain of 11 cents per share related to the July acquisition of Universal Safety Response. Excluding that item, and a non-cash impairment charge related to another acquisition, the company’s quarterly profit totaled a 1 cent per share.
Sales for the quarter rose 49 percent to $108.8 million, from $35.6 million last year. The firearm division rose 31 percent in sales.
For the fiscal third quarter, Smith & Wesson said it expects sales to be between $90 million and $95 million, below analysts’ average estimate of $104.8 million. The company said the third-quarter outlook reflects normal levels of demand and production versus the spike it saw early in the period.
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