EU and US could reach trade deal this weekend - Reuters
MARYVILLE, Tennessee - Smith & Wesson Brands, Inc. (NASDAQ:SWBI) reported third quarter fiscal 2025 results that beat earnings estimates but fell short on revenue, while providing disappointing full-year guidance. The firearms manufacturer’s shares fell 6.8% in after-hours trading Thursday following the release.
For Q3, Smith & Wesson posted adjusted earnings per share of $0.21, surpassing the analyst consensus of $0.03. However, revenue came in at $58.5 million, significantly below expectations of $119.46 million and down 49.9% YoY from $115.9 million.
The company’s outlook also disappointed investors. For fiscal year 2025, Smith & Wesson forecasts EPS between -$0.27 and -$0.19, well below the $0.40 analysts were expecting. Full-year revenue guidance of $207-210 million also fell short of the $491.2 million consensus estimate.
"Our top line revenue for the third quarter came in significantly below our target range," said CEO Mark Smith. "However, lower operating expenses and leveraging of our flexible manufacturing model allowed us to deliver on EPS expectations."
Smith noted that new products performed well, accounting for over 41% of sales in the quarter. However, the company is seeing lower demand for its core product portfolio, negatively impacting both revenue and margins.
CFO Deana McPherson added that Smith & Wesson continues to expect full year revenue to be 5-10% lower than in fiscal 2024. The company’s board authorized a $0.13 per share quarterly dividend, payable on April 3, 2025 to shareholders of record as of March 20, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.