In part four on Smith & Wesson, I'll discuss the importance of Smith & Wesson in the American Gun Industry, talk about how this great company is staying afloat, and I'll also try to answer a few e-mail questions - including one special e-mail that you might find very interesting.
Recently, on June 28th, 2012, Smith & Wesson Holding Corporation's shares jumped in after-hours trading after the legendary firearm maker said its fourth-quarter net income soared on strong sales, particularly of its polymer pistols and modern sporting rifles, and it gave forecasts that beat all expectations.
Its shares soared more than 15 percent after hours on the news.
The company earned $12.5 Million for the quarter that ended April 30. That's up over a Million dollars from the same quarter last year.
Analysts polled by FactSet anticipated earnings from continuing operations of 17 cents per share on revenue of $128.6 Million. Smith & Wesson's total quarterly revenue grew 28 percent to $129.8 million from $101.7 Million.
During the year, Smith & Wesson, based in Springfield, Mass., paid down $30 million of debt and increased its manufacturing capabilities. It said that that growth helped it lay a solid foundation for the new fiscal year.
For fiscal 2012, the company reported net income of $16.1 million, or 25 cents per share, compared with a loss of $82.8 million, or $1.30 per share, last year. From continuing operations, it earned 41 cents per share, compared with 13 cents per share last year. Its revenue rose to $412 million from $342.2 million last year.
On June 29, 2012, Nasdaq stocks posted its large percentage increases. Among the 10 biggest percentage gainers on Nasdaq at the close of trading that day was Smith & Wesson which rose 20.5 percent to $8.31.
For the 2013 fiscal year, it forecast earnings between 60 cents per share and 65 cents per share on revenue between $485 million and $505 million. Analysts are expecting the company to earn 50 cents on revenue of $466 million.
The reason: Americans are buying more guns than ever.
Friends, this is a big deal. The reason is that Smith & Wesson looks to be making a come back!
This figures might dazzle investors. They might impress brokers and bankers. They should also make you feel good, because these figures point to a jump in sales.
Just a month before these numbers came out, two prominent gun makers came out with "Buy" ratings because sales show that more Americans than ever before are opening up to the idea of owning a gun.
The reason for the huge demand is that many believe, and yes, fear is rising that President Barack Obama will be re-elected.
Millions of Americans are worried that Obama will institute extremely restrictive gun laws.
Since becoming President, he has routinely by-passed the legislative branch of our government - Congress - by using his ability to put out Executive Orders to make sweeping changes that wouldn't have otherwise been able to get by the American people.
President Obama has signed 130 Executive Orders to date during his Administration.
When president Obama couldn't get his so-called Dream Act legislation passed through Congress. The legislation that was basically an Amnesty Program for Illegal Aliens, Obama used his privilege to write an Executive Order put it into place.
Now, many in the House and the Senate say President Obama's Executive Order on Immigration "has actually made the problem worse."
Americans fear what Obama will do next, and gun control is a topic he said he will address in his second term in office. Because more and more fear Obama because of his ideology and behavior, Americans are buying what they think will be outlawed or be restricted to only law enforcement in the future.
Fear of Obama, and a Growing Acceptance!
Citing Federal Bureau of Investigation background checks, most say that interest in buying guns for either protection or leisure is growing in regions aren't traditional gun buyers.
Smith & Wesson Holding Corporation (NASDAQ:SWHC) target has been increased by Benchmark Co. following the adjusted point of sale FBI background checks increased 24.5% in June.
The company has provided an FY13 guidance which the firm states is “extremely strong.” The firm believes that commercial firearm sales will be strong throughout the next year causing it to keep its Buy rating.
There is something else, there seems to be a change in attitude about gun ownership. So for Americans who are interested in staying vigilant of our 2nd Amendment Rights, and of course great gun makers like Smith & Wesson, new gun buyers will probably keep going up even after the election this November.
The reason that Smith & Wesson is doing well is due to it's diligence to produce fine firearms.
This is an important part of this article, so let me explain what I've done lately.
To get a feel of how sales is going for Smith & Wesson, and of course customer satisfaction, I visited a number of gun stores from Modesto to San Francisco Bay Area, from Sacramento to Reno.
Once there, I looked at what Smith & Wesson has to offer as a "Buyer" - a consumer. I asked all sorts of questions pertaining to cost effectiveness, quality and workmanship, dependability and ease of use - all in relation to itself in years gone by, as well as to in relation to other makers.
Out of all of those who I spoke with, only one store owner was concerned about the quality of the new M&P15 line of tactical rifles. Other than him, all raved about the quality of all of the guns coming out of Smith & Wesson these days.
As for the M&P15, to me with my background in the Marine Corps and security, the M&P 15 is a civilian M4. And yes, that's a good thing!
As I said in part three, the Smith & Wesson's popular line of M&P15 semi-auto tactical rifles is a ready-to-go design. It is accurate, easy to operate and tear down, very good adjustable rear sights, and has a good price that is not to over the top. To me, I liked the quality and workmanship.
So yes, I really do like the M&P15. I also like the M&P40 semi-auto pistol because it is a very nice extremely comfortable in the hand firearm. Smith & Wesson puts out real quality.
Quality: That's the bottom line!
Research and development (R&D) is great. It is what helps a company come out with new and better products, but if any company spends more of its available capital on R&D and less on its Quality Assurance programs - then that company will find that it has taken the very thing that keeps its company alive and squandered it.
R&D makes a company money down the road, Quality Assurance/ Quality Control gets a company down the road.
The day my brother picked it up, he brought it over to my range on my property. We went through almost 100 rounds target shooting. All I can say is that it preformed super! It has very good accuracy with out the laser, and once the laser is activated life is just that much more easy.
And yes, it looks like there my be one or two in my future because, besides me, my wife even likes it.
And that brings me to my last point, more and more women are wanting to learn how to shoot and carry a handgun for personal protection. They don't want complicated. They was ease of use, dependability, reliability. The Smith & Wesson Bodyguard in .38 is all of that!
This is the perfect little shooter for my wife or anyone else who is a novice with guns and needs to use one.
I can't wait to purchase one for my wife as soon as I can. The problem with that is that Smith & Wesson is putting out their guns as fast as they can to meet the demand. Even Bass Pro Shop, who I visited recently along with others, said that they are back-ordered trying to get that model in.
And that's the point, Smith & Wesson is doing fine. If they are an indication as to how other American gun makers are doing, then our gun industry may be on the rebound from years of lawsuits and government intrusion.
It is great to see an American gun maker making guns in America - and doing pretty well at that.
Smith & Wesson - A Tough Success Story - Part 1
Smith & Wesson - A Tough Success Story - Part 2
Smith & Wesson - A Tough Success Story - Part 3
Story by Tom Correa