NASDAQ$SWBI

Smith & Wesson Brands Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported record gross margin and Q1 net sales with significant two-year compounded sales growth.

Smith & Wesson Brands, Inc. reported a strong first quarter for fiscal year 2022, with record gross margin of 47.3% and record Q1 net sales of $274.6 million. The company's two-year compounded sales growth reached nearly 170%. EPS was reported at $1.57 per share, and Adjusted EBITDAS reached 39.9%.

  • Net sales increased by 19.5% over the comparable quarter last year, reaching $274.6 million.
  • Gross margin improved to 47.3% compared to 40.2% in the same quarter last year.
  • GAAP net income was $76.9 million, or $1.57 per diluted share, compared to $43.3 million, or $0.77 per diluted share, for the comparable quarter last year.
  • Non-GAAP Adjusted EBITDAS was $109.6 million, or 39.9% of net sales, compared to $72.5 million, or 31.5% of net sales, for the comparable quarter last year.

Headline financials

Total Revenue

$84.4M

Previous: $278M-69.6%
EPS (adj)

$1.57

Previous: $0.97+61.9%
Gross Margin

47.3%

Previous: 42.0%+12.6%
Adjusted EBITDAS

$39.90

Previous: $84.2M-100.0%
Capital Expenditures

-$11.5M

Previous: -$7.34M-57.1%
Free Cash Flow

-$4.39M

Previous: $76.1M-105.8%
Net Income

$3.31M

Previous: $48.4M-93.2%
Operating Income

$3.92M

Previous: $65.5M-94.0%
Gross Profit

$31.5M

Previous: $117M-73.0%
Cash & Equivalents

$110M

Previous: $65.3M+69.2%
Total Assets

$521M

Previous: $658M-20.8%
Stock-Based Comp

$1.45M

Previous: $884K+64.3%

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$84.4M

Q1 2022-69.6%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company believes that consumers have a strong preference for their products, positioning them well for changing market conditions. They aim to maintain their industry leadership and profitability. The company is excited about innovating in a new category with the M&P12 shotgun and its growth potential. They also believe their ability to grow the top line without significant fixed costs, leveraging synergies from the spin-off, positions them well for the adjusting market. The flexibility of their operations and the strength of their balance sheet, combined with the hard work of their teams, will enable them to invest in the business, capture market share, and return capital to stockholders.

Tailwinds

  • Consumers have a strong preference for our products at the retail counter.
  • We are well positioned for the ever-changing market conditions in our industry.
  • We can maintain our leadership position in the industry.
  • We can continue delivering impressive profitability in any environment.
  • We have a significant opportunity to continue capitalizing on the momentum we’ve built over the past year with the consumer.

Headwinds

  • Economic, social, political, legislative, and regulatory factors could impact results.
  • Increased regulation of firearms and firearm-related products could impact results.
  • Actions of social activists could have an adverse effect on our business.
  • The impact of lawsuits could impact results.
  • The potential for cancellation of orders from our backlog.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.7%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.9%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+38.7%

Q1 2019

Best reaction

-33.3%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+17.0%+21.1%
Q3 2026+18.7%+18.8%+26.0%
Q2 2026+23.3%+25.3%+12.0%
Q1 2026+6.7%+14.4%+20.7%
Q4 2025+0.0%-16.9%-22.4%
Q3 2025-10.9%-11.3%-17.1%
Q2 2025-23.0%-21.1%-28.7%
Q1 2025-9.8%-13.8%-9.8%
Q4 2024-12.5%-9.7%-6.3%
Q3 2024+32.0%+33.5%+34.6%
Q2 2024-11.3%-14.6%-5.8%
Q1 2024+7.5%+5.3%+19.7%
Q4 2023+15.5%+8.4%+9.3%
Q3 2023+4.3%+3.4%+12.0%
Q4 2022+25.5%+8.3%+3.7%
Q3 2022-13.4%-18.3%-14.7%
Q2 2022-27.4%-20.6%-20.9%
Q1 2022-8.5%-7.0%-13.3%
Q4 2021+13.6%+40.4%+20.1%
Q3 2021-1.5%+10.9%+11.3%
Q2 2021+2.8%+0.1%+14.7%
Q1 2021-12.6%-16.5%-20.4%
Q4 2020-2.4%+2.1%+18.7%
Q3 2020-33.3%-45.1%-27.1%
Q2 2020+1.9%+0.4%+3.1%
Q1 2020-19.2%-23.0%-19.3%
Q4 2019+4.5%-0.7%+3.9%
Q3 2019-10.8%-14.2%-12.9%
Q2 2019+19.2%+12.2%+9.7%
Q1 2019+38.7%+43.0%+53.5%
Q4 2018-2.2%-3.4%-20.3%
Q3 2018+8.4%+18.2%+14.7%
Q2 2018-5.1%-1.0%-13.1%
Q1 2018-17.8%-17.3%-7.3%
Q4 2017-5.9%-7.8%-13.1%
Q3 2017-3.2%-1.6%+1.9%
Q2 2017-9.5%-10.5%-9.6%
Q1 2017-1.6%-0.7%-5.5%
Q4 2016+10.1%+15.3%+32.0%
Q3 2016+7.0%
Q2 2016+5.9%
Q1 2016+13.1%
Q4 2015+2.6%
Q3 2015+5.1%
Q2 2015+3.2%
Q1 2015-13.7%
Q4 2014-7.8%
Q3 2014+2.6%
Q2 2014+3.3%
Q1 2014-7.0%
Q4 2013+1.5%
Q3 2013-5.2%
Q2 2013-6.3%
Q1 2013+15.4%
Q4 2012+17.9%
Q3 2012+28.4%
Q2 2012+21.0%
Q1 2012-8.4%
Q1 2011-8.4%
Q4 2011-8.4%
Q3 2011-11.8%
Q2 2011-3.5%
Q4 2010+1.0%
Q3 2009-12.4%

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