Smith & Wesson Q4 Sales Jump 17.1% as EPS Beats by 60%
Smith & Wesson’s Q4 net sales rose 17.1% to $135.7 million, beating estimates by 8.1% as operating margin improved to 4.9% from 1.9%. Adjusted EPS reached $0.08 (60% above forecasts) and free cash flow swung to $16.82 million from a $16.15 million loss.
1. Fourth-Quarter Financial Results
Smith & Wesson reported fourth-quarter net sales of $135.7 million, a 17.1% increase year-over-year that surpassed analyst estimates by 8.1%. Operating margin rose to 4.9% from 1.9% in the prior-year quarter, driving adjusted EPS of $0.08 compared with $0.02 last year.
2. Free Cash Flow and Profitability Improvements
The company generated $16.82 million in free cash flow, swinging from a negative $16.15 million in the same quarter a year earlier. This cash flow turnaround reflects stronger earnings and improved working capital management.
3. Investor Reaction and Share Movement
Shares of Smith & Wesson jumped 14.2% in afternoon trading following the earnings release, marking one of the largest single-session moves in the past year. At $13.45 per share, the stock has climbed 34.8% year-to-date and reached a new 52-week high.