Gun firm Smith & Wesson hurt by factory shift

 
City A.M. Reporter
GUNMAKER Smith & Wesson Holding last night forecast current-quarter results below analysts’ estimates as it expects to lose several days of production, sending its shares down more than four per cent in extended trading.

The company, which reported a higher profit for the first quarter, said it expects second-quarter income from continuing operations of 20 cents to 22 cents per share on sales of $135m (£86m) to $140m.

Analysts on average were expecting earnings of 29 cents per share on revenue of $143m, according to Thomson Reuters.

The company, which sells guns under brands such as Smith & Wesson, M&P and Thompson/Center, said it would lose several days of production in the second quarter due to a shift to a new resource planning system.

The company, which competes with Sturm Ruger and Co and privately held Glock and Taurus, said revenue rose to $171.0m in the quarter ended 30 July.

Net income rose to $26.5m, or 40 cents per share, from $17.8m, or 27 cents per share, a year earlier.

The firm’s shares have risen more than 30 per cent so far this year.