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Smith & Wesson Brands, Inc. (SWBI), a leader in firearm manufacturing, has seen its stock price touch a 52-week low, dipping to $11.3. This latest price level reflects a challenging period for the company, which has experienced a 1-year change with a slight decline of -1.73%. The firearms market has faced various pressures that have impacted companies like Smith & Wesson, from regulatory challenges to fluctuating demand in the consumer market. Investors are closely monitoring the company's strategies to navigate these headwinds and capitalize on potential growth opportunities in the industry. InvestingPro subscribers can access additional insights, including 6 more ProTips and a comprehensive Pro Research Report, part of the platform's coverage of 1,400+ US stocks.
In other recent news, Smith & Wesson Brands, Inc. reported second-quarter earnings that fell short of analyst expectations, with adjusted earnings per share of $0.11, compared to the projected $0.17. Revenue was also slightly below anticipated figures at $129.7 million, a modest 3.8% YoY increase, but still below the projected $132.42 million. The firearms manufacturer cited normalizing demand and inflationary pressures as key factors behind the weaker-than-expected results, and projects a 10-15% decrease in third-quarter revenue compared to last fiscal year.
Despite these challenges, Smith & Wesson reported market share gains, with new products accounting for 44% of sales in the quarter. The company's gross margin also improved to 26.6% from 25.4% in the same period last year. In other recent developments, the company's board authorized a new $50 million share repurchase program, maintained its quarterly dividend of $0.13 per share, and secured a new $175 million unsecured credit line. However, these developments did not prevent analyst downgrades from Lake Street Capital Markets and Craig-Hallum following the disappointing earnings report and outlook.
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