Does the Street Have Smith & Wesson Holding Figured Out?

Smith & Wesson Holding (NAS: SWHC) is expected to report Q4 earnings June 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Smith & Wesson Holding's revenues will grow 8.9% and EPS will expand 750.0%.

The average estimate for revenue is $121.7 million. On the bottom line, the average EPS estimate is $0.17.


Revenue details
Last quarter, Smith & Wesson Holding reported revenue of $98.1 million. GAAP reported sales were 24% higher than the prior-year quarter's $79.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.08. GAAP EPS were $0.07 for Q3 against -$0.88 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 30.9%, 640 basis points better than the prior-year quarter. Operating margin was 10.9%, 1,330 basis points better than the prior-year quarter. Net margin was 4.5%, 7,120 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $405.0 million. The average EPS estimate is $0.30.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 816 members out of 880 rating the stock outperform, and 64 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give Smith & Wesson Holding a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Wesson Holding is buy, with an average price target of $6.50.

Over the decades, small-cap stocks, like Smith & Wesson Holding have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

The article Does the Street Have Smith & Wesson Holding Figured Out? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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