Smith & Wesson Sheds More Than 10% as Latest Guidance Apparently Misses the Mark

Separately, the U.S. Supreme Court ruled 8-1 Friday that the U.S. Constitution's right to bear arms doesn't block a federal law prohibiting those subject to domestic-violence restraining orders from possessing guns.

SWBI fell as much as 14.3% to a $14.05 session low Friday amid the Supreme Court ruling and the release Thursday after the bell of the firm's fiscal Q4 results and forward guidance.

Smith & Wesson reported $0.45 of adjusted earnings per share on $156.2 million in revenues for the three months ended April 30. That beat the $0.35 adjusted EPS and $156.8 million of revenues that analysts had expected, according to published reports.

The gunmaker also raised its quarterly dividend 8.3% to $0.13 per share,payable Juny 25 to shareholders of record as of July 11.

However, SWBI fell Friday as its forward guidance reportedly disappointed Wall Street.

CFO Deana McPherson said during the firm's earnings call that Smith & Wesson expects a 10% drop in sales in both dollar and unit terms during the current quarter. She warned that higher long-gun sales will likely fail to fully offset a drop in handgun shipments.

Smith & Wesson did say it expects a rebound in fiscal Q2, although that period coincides with the U.S. presidential election – a period that historically sees increased gun sales, as a Democratic victory could lead to tougher weapons laws.

All in, SWBI said it sees full-year revenue up by mid- to high-single-digit percentages over fiscal-2024 results.