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Apr 30, 2022
Smith & Wesson Q4 2022 Earnings Report
Smith & Wesson's Q4 2022 financial results were announced, revealing a decrease in net sales but strong gross margin and adjusted EBITDAS margin.
Key Takeaways
Smith & Wesson Brands, Inc. reported Q4 net sales of $181.3 million, a gross margin of 39.8%, and EPS of $0.79 per share. The adjusted EBITDAS margin was 31.8%, and the company had $120.7 million in cash on hand. The Board of Directors authorized a 25% increase in the quarterly dividend.
Net sales for Q4 were $181.3 million, a 43.9% decrease compared to the same quarter last year.
Gross margin was 39.8%, compared to 45.1% for the comparable quarter last year.
GAAP net income was $36.1 million, or $0.79 per diluted share, compared to $89.2 million, or $1.70 per diluted share, for the comparable quarter last year.
Non-GAAP Adjusted EBITDAS was $57.7 million, or 31.8% of net sales, compared to $125.6 million, or 38.9% of net sales, for the comparable quarter last year.
Forward Guidance
The company expects inflationary pressures to persist and for firearm market conditions to return to more normalized levels in fiscal 2023. They are confident in their flexible manufacturing model and expect to benefit from pricing and product portfolio adjustments.
Positive Outlook
- Flexible manufacturing model
- Benefit from pricing adjustments
- Benefit from product portfolio adjustments
- Agile business model
- Designed to quickly adapt to changes in the marketplace
Challenges Ahead
- Inflationary pressures expected to persist
- Firearm market conditions expected to return to more normalized levels in fiscal 2023
- Tougher year-over-year comparisons
- Lower demand
Historical Earnings Impact
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Avg. Return Before/After Earnings
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