Smith & Wesson Stock Jumps Nearly 30% This Past Friday
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’.”
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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
