Domenica, 04 Dicembre, 2016

Smith & Wesson Stumbles on Weak Guidance

Smith & Wesson Holding Corp. logo Smith & Wesson Holding Corp (NASDAQ:SWHC) target price raised to $26.33, issued a report today by Vetr Inc.
Remigio Civitarese | 02 Dicembre, 2016, 12:18

Since short sellers often purchase calls as a way to hedge their positions, especially ahead of events such as earnings, this could be an indication that even SWHC stock bears are expecting an earnings rally. It has ranged in price between $23.93-$24.6 after having started the session at $23.95 as compared to the previous trading day's close of $23.88. (NASDAQ:SWHC) opened at 23.82 on Friday.

The stock price demonstrated downbeat change from its 50 day moving average of 1.14 and had been up from its 200 Day Moving Average of 0.99.

Quarterly net sales were $233.5 million compared with $143.2 million for the second quarter past year, an increase of 63.0 percent. (NASDAQ:SWHC) last posted its quarterly earnings results on Thursday, September 1st.

In terms of earnings per share, 7 analysts have a 0.54 EPS mean target for the quarter ending Apr-16, for the quarter ending Jul-17, 1 analyst has a 0.55 EPS mean target and for the quarter ending Jul-17 there are 6 estimates of 1.70 EPS. Revenue for the same quarter is predicted to arrive at $227.61M.

Smith & Wesson also upped its outlook for the next few months, estimating its earnings at $2.42 to $2.47 a share for the fiscal year that ends in April.

While Black Friday numbers clearly won't influence Smith & Wesson's second-quarter earnings figures tomorrow evening, it could have an impact on guidance.

Smith & Wesson Holding Corporation (NASDAQ:SWHC) soared 9.19% year-to-date. The stock was sold at an average price of $25.35, for a total value of $76,050.00. The number of shares now owned by investors are 56.28 mln. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. That type of 5.1 percent revenue beat could result in a major move in Smith & Wesson's shares on Friday.

Earnings reaction history indicates that share price went up 15 times out of last 27 quarters. UST delivered compound annual revenue growth of 49 percent from 2012 through 2015, maintained healthy gross margins, and developed hundreds of high quality products. The disclosure for this sale can be found here. American Outdoor Brands Corporation will serve as the holding corporation for Smith & Wesson, Battenfeld Technologies, and Crimson Trace, which represent the company's firearms, manufacturing services, accessories, and electro-optics divisions. Cetera Advisor Networks LLC now owns 10,385 shares of the company's stock worth $276,000 after buying an additional 1,421 shares in the last quarter. First Heartland Consultants Inc. acquired a new position in shares of Smith & Wesson Holding Corp. during the third quarter worth about $690,000. SWHC attains analyst recommendation of 2.60 on scale of 1-5 with week's performance of -2.83%.

Horace Smith and Daniel B. Wesson founded the company in 1852. The Company has average brokerage recommendation (ABR) of 1.57 based on consensus of the ZACKS brokerage firms.

Smith & Wesson's fortunes took a hit in November when Republican Donald Trump won the presidential election and the GOP maintained control of both chambers of Congress. This showed the surprise of 17% in the last quarter earnings. The company stock was downgraded to Hold from Buy, wrote analysts at Wunderlich, in a research note issued to clients on Thursday October 06, 2016.

To find out the technical position of SWHC, it holds price to book ratio of 3.84 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach.

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