Why Smith & Wesson Stock Misfired Today
Smith & Wesson Brands (NASDAQ: SWBI) reported financial results that missed the target by a wide margin. Investors didn't like what they saw, sending shares of the firearms manufacturer down as much as 18% on Wednesday morning.
After markets closed Tuesday, Smith & Wesson reported earnings of $0.26 per share on revenue of $121 million for its fiscal second quarter, which ended Oct. 31. Those numbers were well below the $0.40 per share of earnings on sales of $145 million that analysts had expected.
The company blamed the macro environment for the miss, along with a difficult competitive environment. In a statement, CEO Mark Smith said that "consumer demand for firearms was significantly down from a year earlier, coinciding with a broader consumer slowdown driven by persistently high inflation, the beginning of winter heating season across the northern half of the country, and rising interest rates."
Source Fool.com
