On Friday, March 8, 2024, Smith & Wesson Brands, Inc. (NASDAQ: SWBI) stock had a HUGE increase, with the SWBI stock price rising 29.39%. That’s a massive gain in a single day. Why the huge price spike? S&W sales volumes and revenues were up — WAY up. The latest corporate report revealed big revenue gains in Q3 2024, which dramatically out-paced expectations. Interestingly, S&W’s major revenue gains were from increased long gun sales, not more pistol sales. In addition, experts predict a big increase in overall gun sales during this election year, as buyers fear new restrictive gun laws.
Yahoo Finance reported: “Shares of Smith & Wesson Brands (SWBI) soared on better-than-expected third-quarter results. CEO Mark Smith said … that the company expects ‘the firearm market to experience healthy demand through the 2024 election cycle’. [SWBI] stock was also upgraded to Buy from Hold at Craig-Hallum, which argues the company is entering the election cycle in ‘optimal position’.”
Click Image Below to View Smith & Wesson Stock Price Analysis Video Report:
Yahoo Finance’s Josh Lipton and Julie Hyman discussed the stock’s surge in a 3/8/2024 Yahoo Finance Live webcast. Here is a partial transcript from that Yahoo Finance video:
JOSH LIPTON: We’re going to start here with Smith & Wesson. You could see that stock is skyrocketing in today’s trade.
Net sales, they’re up about 7% to 137.5 million. Gross margins also better than the Street was looking for. And on top of that, we get an upgrade from the team at Craig-Hallum…They take their target to 18… They also, Julie, talk about the upcoming election. They say that should give the company momentum.
JULIE HYMAN: Yeah, we tend to see firearm sales go higher ahead of elections, ahead of Democrats being elected in office because of fear about new gun legislation although that mostly has not come to fruition. But those are the cycles we tend to watch. I thought it was interesting, I was looking through the conference call, handguns are not where the sales activity was from. So handgun sales were actually down. Average selling price of handguns were down.
It was long guns that were higher in both amount of sales and average selling prices. And I don’t know– I mean long guns is a big category. I don’t know if we’re talking about demand from hunting, from sports, from whatever. But whatever it was, they saw an increase.
JOSH LIPTON: Yeah, they didn’t break it down. It is the election. Just to put some more numbers on that, they note that during the 2020 election, which allowed the company, they said, to generate more than a billion in revenue, $4.15 EPS and almost $300 million free cash flow.
Smith & Wesson Company Profile Video
Share the post "Smith & Wesson Stock Jumps Nearly 30% This Past Friday"
Sierra Bullets has been acquired by Clarus Corporation (NASDAQ: CLAR) for the sum of $79,000,000, “subject to a post-closing working capital adjustment”. Sierra is one of the world’s leading producers of bullets for hunters, sportsmen, and target shooters. With revenues topping $30,000,000 per year, Sierra has long been a major force in the firearms world. Clarus, formerly Black Diamond Inc., is a Utah-based holding company which “seeks opportunities to acquire and grow businesses that can generate attractive shareholder returns”. Clarus also owns Black Diamond Equipment, Ltd., maker of outdoor equipment/clothing for the climbing, skiing and mountain sports markets.
StreetInsider.com reports: “The transaction is expected to be immediately accretive to Clarus’ earnings per share. For the unaudited 12 months ended June 30, 2017, Sierra’s total revenues were approximately $32 million with EBITDA of approximately $12.5 million, representing a purchase price multiple of approximately 6.3x EBITDA. Sierra has a strong cash flow profile, generating free cash flow conversion of approximately 95% with limited ongoing capex requirements.”
“The team at Sierra has continued building on a 70-year legacy dedicated to the highest-level of precision in design, world-class manufacturing and quality control,” said Warren B. Kanders, executive chairman of Clarus. “These attributes have cultivated a diverse customer base of enthusiasts and industry OEMs that drive high recurring revenue and strong cash flow, which we expect to maximize through the utilization of our net operating loss carry forwards.”
Sierra’s President Pat Daly commented: “Our team takes great pride in developing and manufacturing the most precise and accurate bullets in the world. This is supported by our deep institutional knowledge of highly-specialized manufacturing processes that have produced leading products and created a significant competitive advantage. As the only pure-play bullet brand, it was important for us to partner with a team that shares our values and commitment to excellence, and we are excited to join the Clarus family. I look forward to staying on to continue driving our brand growth.” All senior management are expected to remain with Sierra under Clarus’ ownership.
About Sierra Bullets
Founded in 1947 in California, Sierra Bullets is an American manufacturer of bullets. Based in Sedalia, Missouri since 1990, Sierra manufactures a wide range of bullets for both rifles and pistols. Sierra’s product line, recognized by iconic “green box” packaging, includes popular brands such as MatchKing, GameKing, and BlitzKing. Sierra bullets are used for precision target shooting, hunting, and defense purposes. For more information, visit SierraBullets.com.
News Tip from Boyd Allen. We welcome reader submissions.
Share the post "Sierra Bullets Sold to Clarus Corporation"
Smith & Wesson is replacing its President/CEO. This comes after Smith & Wesson stock hit rock bottom last week, trading at $2.49 per share, a 52-week low. Smith & Wesson Holding Corporation (NASDAQ: SWHC) today announced that P. James Debney has been appointed President, Chief Executive Officer, and a member of the Board of Directors, effective immediately. The company said the executive reshuffling was done “in accordance with the company’s comprehensive management succession planning process.” Debney previously served as Vice President of Smith & Wesson Holding Corporation and President of the company’s firearm division. Debney will replace former President/CEO Michael F. Golden, who will continue as a member of S&W’s Board of Directors.
According to the Outdoor Wire: “The remaining term of former President and CEO Michael F. Golden’s employment contact has being bought out by the company, but Golden will continue as a member of the Board of Directors[.] Golden’s contract is expected to impact the company’s current quarter earnings per share by as much as two cents, with the gross numbers to be included in the quarterly 10-Q set to be released after the close of the stock markets today.” Smith & Wesson stock, as of the time of this Bulletin release, is trading at $2.58 per share, gaining back a bit from the $2.49 low on Sept. 23, 2011.
Share the post "Smith & Wesson Replaces President/CEO After Stock Declines"
