Smith & Wesson Q4 Revenue Rises 26.7% to $178.4M, EPS Hits $0.36
SWBI•Smith & Wesson reported Q4 revenue of $178.40 million, beating analyst forecasts of $155.27 million and marking a 26.7% year-over-year increase. Net income rose to $16.2 million with EPS of $0.36 and a 29.8% gross margin, supported by $74.6 million in operating cash flow and a 3.2 current ratio.
1. Q4 Revenue and Growth
Smith & Wesson delivered revenue of $178.4 million in Q4, surpassing expectations of $155.27 million and representing a 26.7% year-over-year increase driven by robust handgun demand and market share gains.
2. Earnings and Profitability
Net income rose from $8.6 million to $16.2 million, lifting EPS to $0.36 and pushing gross margin to 29.8% on improved cost efficiency.
3. Cash Flow and Liquidity
Operating cash flow reached $74.6 million in Q4, reflecting strong conversion of sales into cash, while the current ratio of 3.2 underscores robust liquidity to cover short-term obligations.
4. Stock Reaction and Outlook
Shares jumped 19% following the report, reflecting investor confidence in rising handgun sales; sustained operating cash and margin expansion may support further strategic initiatives.
