Smith & Wesson Holding Beats on Both Top and Bottom Lines
Jun 29th 2012 11:21AM
Updated Jun 29th 2012 11:24AM
Smith & Wesson Holding (NAS: SWHC) reported earnings on June 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q4), Smith & Wesson Holding beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins expanded across the board.
Smith & Wesson Holding tallied revenue of $129.0 million. The five analysts polled by S&P Capital IQ predicted sales of $119.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $111.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The five earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.19 for Q4 were much higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.2%, 470 basis points better than the prior-year quarter. Operating margin was 17.9%, 1,380 basis points better than the prior-year quarter. Net margin was 9.6%, 860 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $129.3 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $499.7 million. The average EPS estimate is $0.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 817 members out of 880 rating the stock outperform, and 64 members rating it underperform. Among 200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give Smith & Wesson Holding a green thumbs-up, and 14 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 $9.50.
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The article Smith & Wesson Holding Beats on Both Top and Bottom Lines 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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