• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Smith & Wesson shares drop after earnings miss, downgrades

by December 6, 2024
written by December 6, 2024

In premarket trading, shares of Smith & Wesson Brands Inc (NASDAQ:SWBI). saw a significant decline, dropping 18% following the announcement of their second-quarter results, which fell short of analysts’ expectations. The gun maker’s adjusted earnings per share (EPS) came in at 11 cents, whereas the Bloomberg consensus had estimated 17 cents based on two estimates. Additionally, net sales reported were $129.7 million, missing the forecast of $133.7 million. The company also reported an adjusted operating income of $7.91 million, lower than the anticipated $9.59 million, and a gross margin of 26.6% compared to the estimated 29.8%.

Amidst these results, Craig-Hallum analyst Steve Dyer downgraded Smith & Wesson Brands to a hold rating, reducing the price target to $13 from the previous $18. The downgrade reflects a broader trend in the firearms industry, which, according to Dyer, has entered a “digestion period” after years of heightened purchasing activity. This period is marked by a normalization following the surge in buying driven by fears of stricter gun regulations in the 2010s and the pandemic in the early 2020s.

The industry-wide cooler demand for firearms and an increase in promotions are factors contributing to what Craig-Hallum describes as a “more challenging near-term financial profile” for Smith & Wesson Brands. Despite these headwinds, the firm maintains a long-term positive outlook on the brand, expecting it to continue delivering returns to shareholders.

Lake Street Capital Markets LLC analyst Mark Smith also revised his recommendation for the firearms manufacturer to hold from buy. The new price target set by Smith indicates a 4.6% decrease from the last closing price.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
‘New’ Vodafone is emerging, BofA says: shares gain
next post
Instant view: US Nov payrolls show job growth accelerated after October hiccup

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • AirSculpt Technologies’ shares fall following lower 2024 preliminary results
    • China mulls yuan depreciation in face of potential US tariffs

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy