Smith & Wesson Holding Corporation (SWHC) is expectedto report earnings after the market close on Thursday, June 28, 2012, Management will host the conference immediately afterwards.
Wall Street anticipates that SWHC will earn $0.17 for its 4th quarter. Top Equity News expects the firearms maker to report earnings that will beat Wall Street’s consensus number. TEN’s estimate is 23 cents – a 6 cent upside surprise.
On June 6th, a Wedbush analyst told clients that gun sales rose in May. Buyers were worried that President Barack Obama may stiffen gun laws if he is reelected. The analyst, Rommel Dionisio, believes SWHC is gaining market share.
In May, company management announced “Preliminary net sales from continuing operations for the fourth quarter were approximately $129 million,” which is significantly higher than the company’s previous guidance of $113 million to $118 million.
In the last two quarters, Smith & Wesson has exceeded the Street’s outlook by more than 100%. In both cases, shares added more than 25% in the days surrounding the news. In fact, three of the last four quarterly announcements shares have moved higher by at least 24%, with one minus 10.6% dud.
Forward looking guidance form management will be the key to how the stock reacts following next week’s checkup. Top Equity believes gun sales will be brisk all the way through the election.
Based on its stock chart, the gun maker’s stock price has reacted very little to the company’s rosy outlook. Shares are stuck against their 50-day moving average. With SWHC’s short-term moving average and MACD trending higher, TEN can envision Smith & Wesson Holding Corporation (SWHC) challenging its 52-week high of $8.62 on robust earnings and handsome guidance.
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