Smith & Wesson: Guns & Profit

Getting rid of Walther, grabbing market share and selling to the professional market all contributed to increased sales and gross profit for Smith & Wesson in the quarter ending August 31, 2013 according to company officials.

For consumers, the best news might have been the company’s focus to eliminate the order backlog and the goal to move from operating at capacity to operating at demand.

So, what new guns does the company have in the pipeline, and what role will the state of Illinois play in the future of Smith & Wesson? Let’s take a look at the past quarter and gaze into the future with the insights gained from the company’s latest earnings call.


Smith & Wesson Gross Profit Up 35.5%

Smith Wesson LogoSmith & Wesson released the company’s financial results for the quarter ending October 31, 2012.  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.  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.  Even with these improvements, the company continued to receive more orders than they could produce.  In fact, the order backlog increased 122% compared to the second quarter of 2012.  The total value of the backlog orders is $332.7 million.  I wonder how much that jumped after the election?


Smith & Wesson Income and Sales Above Expectations

Smith Wesson LogoSmith & Wesson, one of just a few publicly traded gun companies, released a statement announcing preliminary sales and profit data for the second quarter of fiscal year 2013.  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.  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.


Smith & Wesson Posts Another Record Quarter; Looks to Future

Smith Wesson LogoFresh off record breaking profits in the first quarter of fiscal 2013, Smith & Wesson is looking to the future, reducing operating costs and gearing up for increased production of the M&P pistol line.

According to a press release from Smith & Wesson, Q1-2013 (ending August 31, 2012) was quite good for the company with record net sales and profits plus a reduction in operating costs.

Key Points

  • net sales of $136 million, up more than 48% from Q1-2012
  • gross profit of $51.3 million, or 37.7% of net sales
  • gross profit up from $26.5 million in Q1-2012
  • operating expenses down by $1 million when compared to Q1-2012
  • net income a record $18.9 million, up from $2.3 million in Q1-2012
  • cash on hand at end of Q1-2013 was $60.5 million

Colt Defense Posts Another Loss

Colt Defense M16

Colt Defense lost $6.7 million dollars in the quarter ending July 31, 2012.

Compared to the same quarter from one year ago, Colt sold 23.2% more products.  Yet, the company saw a more than 250% increase in losses.  Methinks these numbers are not good.