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Smith & Wesson on Thursday reported fiscal-first-quarter earnings that crushed analysts’ expectations, and the company raised its full-year guidance.
The gunmaker posted adjusted earnings per share of $0.62 and revenue totaling $207 million. Analysts had forecast that it earned $0.54 in adjusted EPS, and revenue of $198.3 million, according to Bloomberg.
“We believe that higher revenue was driven by strong consumer demand as reflected in adjusted background checks from the National Instant Criminal Background Check System (NICS) as well as our own market share gains,” said CEO James Debney in the earnings release.
The company said it expects fiscal-2017 EPS in a range of $2.38 to $2.48, up from a range of $1.83 to $1.03, and topping analysts’ projection for $1.91.
Smith & Wesson was expected to report better-than-expected results on higher gun sales following increased talk about gun control. The mass shooting at a nightclub in Orlando in June, the deadliest in US history, helped stoke concerns that guns may be harder to buy if tougher laws are passed.
Sturm, Ruger & Co. CEO Michael Fifer said during that gunmaker’s earnings call that he hoped “freedom-loving Americans” took action in support of the Second Amendment, which grants the right to bear arms. The company pledged to donate $2 to the National Rifle Association for every gun it sold.
Smith & Wesson shares have gained 33% this year. They rose 3% after-hours.