Smith & Wesson Brands (SWBI), reported earnings results for the Q2 fiscal year 2023 which disappointed investors. both in earnings and revenue. Here are the key points:
Net sales dropped 47.5% to $121 million, from the same quarter last year. The expectations were for sales of $145 million
GAAP net income was reported at $9.6 million, or $0.21 per diluted share, well below the $50.9 million, or $1.05 per diluted share, for the same quarter last year
Non-GAAP net income came at $12 million, or $0.26 per diluted share, compared with $55.3 million, or $1.13 per diluted share, in the same quarter of 2021. Analyst’s expectations were for $0.44 per diluted share
Non-GAAP Adjusted EBITDAS reported st $25.6 million, the same quarter of 2021 was at $80.4 million
Gross margin is at 32.4% compared with 44.3% in the second quarter of 2021. Excluding the relocation costs, the gross margin would have been 33.9%
Smith & Wesson announced a quarterly dividend of $0.10, payable on January 3 to shareholders of record on December 20.
Smith & Wesson Stock Price
Smith & Wesson stock ended the trading day 2.16% lower at $11.80 while in the after-market trading the stock is down over 7% at $10.88. SWBI’s market cap is now at 540.14 million. SWBI’s 52-week trading range is between $9.93 and $18.94. SWBI stock is trading with a trailing Price to Earnings ratio (P/E) of 4.31 while the dividend yield is at 3.24%.
From a technical perspective, Smith & Wesson stock after the rebound from the September lows met strong resistance at the 100-day moving average. Bulls need a convincing break above $12.25 which would open the way for the next hurdle at $13.56 (200-day moving average). If Smith & Wesson shares fail to breach the 100-day moving average then we might see a correction towards the 50-day moving average at $11.09.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).