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
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
