June 21, 2016: Salesman Ryan Martinez hold an Smith & Wesson handgun and magazine at the "Ready Gunner" gun store in Provo, Utah. (Reuters)
Smith & Wesson Holding Corp. said its sales jumped 40% and profit more than doubled in its first quarter, leading the firearms maker to sharply raise annual guidance for revenue and income.
The Springfield, Mass., company now expects sales for the fiscal year ending in April to be between $900 million and $920 million, a notable climb from its previous range of $704 million to $760 million and the average analyst estimate on Thomson Reuters of $777 million.
Smith & Wesson also expects adjusted earnings on a per-share basis to land between $2.38 and $2.48, up from a previous outlook of between $1.83 and $1.93. Analysts expected annual adjusted earnings of $1.92 a share.
In June, the largest U.S. gun maker said it expected sales to rise again over the coming 12 months. The announcement followed the mass shooting in Orlando, Fla., which stirred concerns of tougher rules on gun ownership. Uncertainty over changes in federal firearms policy often stokes sales.
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