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Jan 31, 2024

Smith & Wesson Q3 2024 Earnings Report

Reported a strong quarter with increased net sales and solid earnings performance.

Key Takeaways

Smith & Wesson Brands, Inc. reported a positive third quarter in fiscal year 2024, with net sales increasing by 6.5% compared to the same quarter last year. The company's performance reflects robust demand for its products and effective management of its operations.

Net sales reached $137.5 million, a 6.5% increase year-over-year.

Gross margin was 28.7%, with a non-GAAP gross margin of 29.1%.

GAAP EPS was $0.17 per share, while adjusted EPS was $0.19 per share.

Adjusted EBITDAS margin was 15.6% of net sales.

Total Revenue
$137M
Previous year: $129M
+6.5%
EPS
$0.19
Previous year: $0.25
-24.0%
Gross Margin
28.7%
Previous year: 32.4%
-11.4%
Adjusted EBITDAS
$21.4M
Previous year: $23.7M
-9.7%
Gross Profit
$39.4M
Previous year: $41.8M
-5.8%
Cash and Equivalents
$47.4M
Previous year: $44.6M
+6.2%
Free Cash Flow
$7.16M
Previous year: -$18.3M
-139.2%
Total Assets
$571M
Previous year: $529M
+7.8%

Smith & Wesson

Smith & Wesson

Forward Guidance

The company anticipates healthy demand in the firearm market through the 2024 election cycle and is confident in its ability to deliver value to stockholders.

Positive Outlook

  • Company expects healthy demand through the 2024 election cycle.
  • Deep pipeline of new products.
  • Leading brand recognition.
  • New state-of-the-art facility in Tennessee.
  • Strong balance sheet.

Challenges Ahead

  • Economic factors.
  • Social factors.
  • Political factors.
  • Legislative factors.
  • Regulatory factors.