Investors and analysts have seen some mixed results lately from Smith & Wesson (SWBI)—sometimes a bang and at other times a whimper. The firearm company’s fourth-quarter and full fiscal year 2024 financial results were upbeat. Revenue increased by 10% year-over-year and full-year revenue and unit shipments grew by 12% and 13%, respectively. Non-GAAP ESP for Q4 reached $0.45. It outpaced market growth in FY 2024 and anticipates continued strong firearm demand for FY 2025. On the other hand, shares dropped 13.7% Friday morning after the firm reported its Q1 earnings and gave less-than-stellar guidance. Management expects softer near-term demand for its products than previously expected, with Q1 2025 sales projected to be down about 10% compared to Q1 of last year, although Q2 is expected to see a rebound.   

What’s New At Smith & Wesson?

Most recently, Smith & Wesson had a successful launch of its 1854 lever-action rifle. The company has plans for further extensions in its firearm line and expansions of capacity. It also expects that sales will grow in Q2, coinciding with the November elections. Historically, there is strong demand in an election year, starting in the fall. As President and CEO Mark Smith explained in the earnings call, the company’s expansion plans in the near term include new products in the summer continuing through the hunting season, when there is also increased demand. In FY 2024, the company introduced more than 100 new products which accounted for 27% of total revenue.

Zooming Out

Based on analysts that cover Smith & Wesson—Aegis Capital and Craig-Hallum—SWBI is a Strong Buy. Their consensus 12-month price target is $18. On Friday, Lake Street Capital raised its price target from $16 to $18. Large investors who have recently boosted stock ownership in the company include Keynote Financial Services LLC (a new stake worth $199,000) and EMC Capital Management (boosted by 29.2%). Others who have acquired new stakes include Bayesian Capital Management LP, Price T Rowe Associates Inc, and Quadrature Capital Ltd. Based on these recent moves, hedge funds and institutional investors now own about 59.33% of Smith & Wesson stock.

Neither Julie Stoller nor Stocks.News have positions in this company.