Smith & Wesson Brands, Inc. (SWBI) stock has reached a 52-week low, trading at $10.43, as the firearms manufacturer grapples with a challenging market environment. Over the past year, the company has seen its stock price decline by 21.97%, reflecting investor concerns over regulatory headwinds and a potential decrease in consumer demand. Despite these challenges, the company offers a notable 4.95% dividend yield and trades at a P/E ratio of 13.17. The drop to the 52-week low underscores the pressures facing the industry and raises questions about the company’s future performance in an increasingly competitive and regulated market. InvestingPro subscribers have access to 13 additional exclusive insights about SWBI’s financial health and growth prospects.
In other recent news, Smith & Wesson Brands, Inc. experienced a downturn in its Q2 earnings, falling short of analyst expectations and consequently reducing its outlook for the second half of fiscal 2025. The firearms manufacturer reported adjusted earnings per share of $0.11, missing the consensus estimate of $0.17. The company’s revenue was $129.7 million, slightly under the projected $132.42 million, albeit a 3.8% increase year-over-year.
The weaker results were attributed to normalizing demand and inflationary pressures affecting consumer spending. Smith & Wesson now projects its third-quarter revenue to be approximately 10-15% lower than the same period last fiscal year. Despite these challenges, the company reported an increase in market share, with new products accounting for 44% of sales in the quarter.
Furthermore, Smith & Wesson’s board has authorized a new $50 million share repurchase program and maintained its quarterly dividend at $0.13 per share. The company also secured a new $175 million unsecured credit line, thereby augmenting its total available borrowings by $75 million. In response to these developments, Lake Street Capital Markets and Craig-Hallum downgraded the company’s stock.
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