Smith & Wesson Stock Up As It Lifts Forecast For Q3, FY16

(RTTNews) - Smith & Wesson Holding Corp.'s (SWHC) shares gained around 6 percent in the extended trading on Monday after the firearm manufacturer lifted its expectations for its third quarter and full 2016 fiscal year. According to the company, the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms.

For the third quarter, the company now expects earnings per share between $0.36 and $0.38, adjusted earnings per share between $0.39 and $0.41, and net sales in the range of $175 million to $180 million.

The company previously was projecting reported earnings between $0.24 and $0.26, adjusted earnings per share between $0.27 and $0.29, and net sales in the range of $150 million to $155 million.

Analysts polled by Thomson Reuters expect third-quarter earnings of $0.28 per share and net sales of $154.56 million. Analysts' estimates typically exclude special items.

For the fiscal year 2016 ending April 30, the company now expects reported earnings in the range of $1.21 to $1.26 per share, and adjusted earnings in the range of $1.36 to $1.41 per share. This is higher than the company's previous projected reported earnings of $1.11 to $1.16 per share and adjusted earnings of $1.26 to $1.31 per share.

Net sales for the year are now expected between $650 million and $660 million, higher than earlier outlook of $625 million to $635 million.

For the year, analysts expect earnings of $1.32 per share and net sales of $636.48 million.

The company added that Adjusted National Instant Criminal Background Check System or NICS data for the month of December, which serves as an indicator of consumer purchases, reflected strong growth versus December 2014.

On Nasdaq, Smith & Wesson shares gained 6 percent on Monday's trading to close at $23.28. In the after hours trading, shares gained 5.5 percent further.