Smith & Wesson (SWBI.US) stock is trading nearly 14% lower after the firearms producer reported quarterly results which indicate the rising sales momentum may be fading away.
- Company earned 69 cents per share, well below market expectations of 86 cents per share. Revenue of $177.7 million failed to beat analysts’ estimates of $198.29 million. This represents a 31% decline from the year-ago figure, but revenue is still 140% higher compared to the same period two years ago.
- "Although the firearms market remains elevated and healthy with new entrants, it has cooled significantly from the height of the pandemic surge and seems to now be following pre-pandemic historical demand patterns," said Mark Smith, president and CEO of Smith & Wesson.
- Despite weak figures, management believes that the company is well positioned to return value to shareholders via dividends and buybacks.
Smith & Wesson (SWBI.US) stock launched today's session with a bearish price gap, however sellers managed to halt declines around $14.00 level and rebound started. The nearest resistance is located at $17.80 and coincides with 61.8% Fibonacci retracement of the upward wave from March 2020. Source: xStation5
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