P
Patriot Games
Guest
http://money.cnn.com/news/newsfeeds/articles/apwire/508e12e2b67cc1ca5180b860ab8b5487.htm
Smith & Wesson 2Q Profit Rises
International and US Police Sales Offset Weak Domestic Consumer Demand
December 06, 2007
NEW YORK (Associated Press) - Gun maker Smith & Wesson Holding Corp. said
Thursday profit rose 3 percent in its fiscal second quarter, as strong
international and U.S. police sales offset weak domestic consumer demand.
Net income rose to $2.94 million in the three months ended Oct. 31 from
$2.85 million a year earlier. Per-share earnings were flat at 7 cents
because the company increased the number of outstanding shares to 48.3
million from 41.5 million.
Overall revenue rose 39 percent to $71.4 million from $51.4 million. Product
and services sales, which exclude licensing income, rose 39 percent to $70.8
million from $50.8 million.
The results topped Wall Street's expectations: Analysts polled by Thomson
Financial expected earnings of 6 cents per share on revenue of $69.5
million.
International and law-enforcement sales buoyed results. Several police
departments selected Smith & Wesson weapons recently, sending its military
and police pistol deliveries up 54 percent during the quarter. International
sales more than doubled during the second quarter to $7.8 million.
A soft U.S. hunting market due to warm weather resulted in high inventories
and lower product prices, making the second quarter a "challenging one,"
Chief Executive Michael Golden said in a statement.
Smith & Wesson also reported an increase in its credit facility to $110
million on Thursday to expand its non-consumer businesses through
acquisitions and other means.
"We are dedicated to expanding the Smith & Wesson brand more deeply into
non-consumer sales channels and into new non-firearms categories that will
diversify our base of revenue and build upon our reputation for safety,
security, protection and sport," Golden said.
However, the company's full-year profit guidance of 40 cents per share fell
short of expectations of 52 cents per share, indicating that those plans may
not help short-term results. Smith & Wesson attributed its forecast to
higher costs, a plant shutdown and lower production volumes.
Its stock fell $2.31, or 23.4 percent, to $8.52 in after-market trading.
Smith & Wesson 2Q Profit Rises
International and US Police Sales Offset Weak Domestic Consumer Demand
December 06, 2007
NEW YORK (Associated Press) - Gun maker Smith & Wesson Holding Corp. said
Thursday profit rose 3 percent in its fiscal second quarter, as strong
international and U.S. police sales offset weak domestic consumer demand.
Net income rose to $2.94 million in the three months ended Oct. 31 from
$2.85 million a year earlier. Per-share earnings were flat at 7 cents
because the company increased the number of outstanding shares to 48.3
million from 41.5 million.
Overall revenue rose 39 percent to $71.4 million from $51.4 million. Product
and services sales, which exclude licensing income, rose 39 percent to $70.8
million from $50.8 million.
The results topped Wall Street's expectations: Analysts polled by Thomson
Financial expected earnings of 6 cents per share on revenue of $69.5
million.
International and law-enforcement sales buoyed results. Several police
departments selected Smith & Wesson weapons recently, sending its military
and police pistol deliveries up 54 percent during the quarter. International
sales more than doubled during the second quarter to $7.8 million.
A soft U.S. hunting market due to warm weather resulted in high inventories
and lower product prices, making the second quarter a "challenging one,"
Chief Executive Michael Golden said in a statement.
Smith & Wesson also reported an increase in its credit facility to $110
million on Thursday to expand its non-consumer businesses through
acquisitions and other means.
"We are dedicated to expanding the Smith & Wesson brand more deeply into
non-consumer sales channels and into new non-firearms categories that will
diversify our base of revenue and build upon our reputation for safety,
security, protection and sport," Golden said.
However, the company's full-year profit guidance of 40 cents per share fell
short of expectations of 52 cents per share, indicating that those plans may
not help short-term results. Smith & Wesson attributed its forecast to
higher costs, a plant shutdown and lower production volumes.
Its stock fell $2.31, or 23.4 percent, to $8.52 in after-market trading.
