Smith & Wesson Brands (NASDAQ:SWBI) Shares Gap Up After Strong Earnings

Key Points

• Strong earnings beat: Smith & Wesson reported quarterly EPS of $0.06 versus consensus of a $0.06 loss, while revenue rose 32.3% year over year to $129.37 million, well above estimates.
• Positive outlook: Management projected fiscal 2027 revenue growth of 5% to 7% and guided second-quarter revenue above analyst expectations, supported by demand for handguns, long guns and new products.
• Dividend maintained: The company declared a quarterly dividend of $0.13 per share, equivalent to $0.52 annually and an indicated yield of approximately 4.2%; the stock initially gapped higher following the results.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $12.27, but opened at $14.12. Smith & Wesson Brands shares last traded at $12.4040, with a volume of 497,274 shares trading hands.

The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.12. Smith & Wesson Brands had a net margin of 3.53% and a return on equity of 5.01%. The company had revenue of $129.37 million for the quarter, compared to analyst estimates of $98.70 million. During the same period in the previous year, the business posted ($0.08) EPS. Smith & Wesson Brands's revenue was up 32.3% on a year-over-year basis.

Smith & Wesson Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 17th will be given a $0.13 dividend. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $0.52 dividend on an annualized basis and a yield of 4.2%. Smith & Wesson Brands's dividend payout ratio is presently 130.00%.

More Smith & Wesson Brands News

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Strong quarterly performance: Fiscal Q1 revenue rose 32.3% year over year, while earnings were $0.06 per share versus the consensus estimate for a loss of $0.06. Reported sales were substantially ahead of expectations, supported by handgun and long-gun demand, new products and a favorable product mix. Smith & Wesson Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Upbeat outlook: Management projected fiscal 2027 revenue of approximately $550.0 million to $560.5 million, implying 5% to 7% growth, and guided second-quarter revenue to about $137.1 million—above the roughly $132.2 million consensus estimate. Q2 sales are expected to be about 10% higher than last year. Smith & Wesson Projects Fiscal 2027 Revenue Growth
• Positive Sentiment: Analyst upgrade: Seeking Alpha upgraded SWBI from “hold” to “buy,” citing the earnings beat, attractive valuation, improving background-check data and evidence that recent product launches are strengthening end-user demand. I Have To Pull This Trigger On Smith & Wesson
• Positive Sentiment: Shareholder return: The company declared a quarterly dividend of $0.13 per share, payable October 1 to shareholders of record September 17. The indicated annualized yield is approximately 4.2%, which may support investor interest.
• Neutral Sentiment: The earnings call provided additional detail on demand trends, new-product execution and fiscal 2027 priorities. Investors will continue to monitor whether the improved demand environment is sustained and whether margins convert the sales growth into stronger profitability. Smith & Wesson Q1 2027 Earnings Call Transcript

Analyst Upgrades and Downgrades

SWBI has been the topic of several recent research reports. Zacks Research raised shares of Smith & Wesson Brands to a "hold" rating in a research note on Tuesday, June 23rd. Lake Street Capital raised their price objective on shares of Smith & Wesson Brands from $14.00 to $16.50 and gave the stock a "buy" rating in a report on Thursday, June 18th. Finally, Weiss Ratings lowered Smith & Wesson Brands from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $16.50.

Institutional Investors Weigh In On Smith & Wesson Brands

Large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in Smith & Wesson Brands in the second quarter valued at approximately $61,549,000. Pacer Advisors Inc. acquired a new stake in shares of Smith & Wesson Brands during the first quarter worth approximately $2,205,000. Landscape Capital Management L.L.C. acquired a new stake in shares of Smith & Wesson Brands during the second quarter worth approximately $1,831,000. PDT Partners LLC bought a new stake in shares of Smith & Wesson Brands in the second quarter worth $1,981,000. Finally, Dimensional Fund Advisors LP increased its stake in shares of Smith & Wesson Brands by 5.8% in the first quarter. Dimensional Fund Advisors LP now owns 2,616,319 shares of the company's stock worth $37,492,000 after buying an additional 143,069 shares during the last quarter. Institutional investors and hedge funds own 59.33% of the company's stock.

Smith & Wesson Brands Stock Up 1.9%

The stock has a market capitalization of $560.63 million, a price-to-earnings ratio of 31.18 and a beta of 0.86. The firm's fifty day moving average is $14.46 and its 200-day moving average is $14.42. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.20 and a quick ratio of 1.13.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.

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