Smith & Wesson, one of just a few publicly traded gun companies, released a statement announcingÂ preliminaryÂ sales and profit data for the second quarter of fiscal year 2013. Â The numbers were a significant improvement compared to the same time one year ago and beat previous expectations for this quarter.
According to S&W, net sales were up $44 million, or about 48%, compared to the second quarter of fiscal year 2012. Â Net income is expected to be between $0.23 and $0.24 per diluted share, which is above the company’s prior guidance of $0.19 to $0.21, and well above last year’s $0.01 per share.
Based on current projections, Smith & Wesson expects net sales for the year to reach up to $540 million, which would represent an approximate 30% sales growth compared to the previous year.
Smith & Wesson credits much of the sales growth to increased orders for guns in the M&P line, including the duty pistols, Shield and AR-15 rifles.
There is no way to predict what kinds of gun control schemes will be attempted in the coming year, but all of them will likely have short- and long-term effects on the market. Â Short-term, I would expect an increase in sales, while long-term any successful gun-grabbing schemes would make the sales of certain product lines much more limited.
Please note: Â I am not a financial advisor; I’m just some guy with a keyboard. Â Do not take any of the above as financial or investing advice. Â I do not have any business interests in Smith & Wesson, nor have I received any compensation for writing this article.