Shares of Smith & Wesson Holding Corp. (SWHC) have surged nearly 18% today as fiscal fourth-quarter revenue grew more than expected.
The firearms maker said fiscal fourth-quarter revenue jumped 20% to $99.5 million, beating Wall Street expectations. The company attributed the performance to the strong demand for its handguns and tactical rifles.
Meanwhile, Smith & Wesson announced that it will be acquiring Universal Safety Response Inc. in a cash and stock deal. The acquisition will provide the company a foothold in the perimeter security market. USR is expected to contribute about $50 million in fiscal 2010 revenue and $100 million in fiscal 2011 sales.
SWHC, a Zacks #3 Rank (“Hold”) stock, is trading on heavier-than-usual volume of about 3.6 million, compared to average daily volume of about 1.1 million. It will report fiscal fourth-quarter results on Jun 22.
“SWHC” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research
