Smith & Wesson has hiked full year forecasts as it processes two new acquisitions

 
Mark Sands
Follow Mark
The National Rifle Association Kicks Off Its Annual Meeting In Louisville
Smith & Wesson beat forecasts as it benefits from two big buys. (Source: Getty)

Smith & Wesson beat projections with a strong set of quarterly results last night, while boosting its full year forecasts following a pair of acquisitions.

The Massachusetts business lifted its full year earnings forecast up from a previous outlook of up to $1.93 per share to a new ceiling of $2.48 per share, equivalent to $2.2bn (£1.6bn).

President and chief executive James Debney said the firm was benefiting from previously announced deals for knife maker Taylor Brands and Crimson Trace, which manufactures laser sights for firearms.

“These acquisitions, which further expand our presence in the markets for outdoor products and accessories, were completed early in the second quarter,” Debney said.

“Based upon that timing, as well as our performance for the first quarter and our revised outlook for the remainder of fiscal 2017, we are raising our full year revenue and net income guidance."

It came as the firm topped expectations for the quarter to July, notching sales of $207m, up 40 per cent on the previous year, and beyond analysts expectations of $198.16m.

Smith & Wesson shares responded by briefly surging five per cent in after hours trading last night, before tipping back downwards to near a close of $29.58.

Related articles