Smith & Wesson released the company’s financial results for the quarter ending October 31, 2012. Â For the second quarter (fiscal 2013), Smith & Wesson posted a gross profit of more than $48 million, representing an increase of 35.5% over the second quarter of the previous year.
Net sales for the quarter were up $136.6 million, representing an incredible increase of 48% over the quarter from the prior year. Â Keep in mind that the quarter ended before President Obama was re-elected in November.
S&W noted in their results that they have increased their production capacity and improved their supply chain efficiency. Â Even with these improvements, the company continued to receive more orders than they could produce. Â In fact, the order backlog increased 122%Â compared to the second quarter of 2012. Â The total value of the backlog orders is $332.7 million. Â I wonder how much that jumped after the election?
Smith & Wesson stated that sales are up across all of their firearms lines, and specifically pointed the the M&P line of handguns and rifles with the Shield being mentioned by name.
What may be seen as a strong sign of the company’s health is that the S&W Board of Directors approved a stock buy-back of up to $20 million.
It looks like the Springfield, MA company is doing very well. Â It really is too bad that the currentÂ politicalÂ and economic climate is such that a significant expansion of the company’s manufacturing capacity is not likely in the short term.
The information presented in this article is NOT intended as financial advice. Â I am NOT someone you should ever listen to for financial advice. Â I do NOT offer the above information for anything other than entertainment. Â If you use this article to assist you in makingÂ financialÂ decisions, you are a fool. Â If you have interest in making an investment in Smith & Wesson, you should go read the report for yourself, talk to an experience investment advisor and forget you ever were here. Â Oh, and I am not a stockholder or otherwise employed by Smith & Wesson.