NASDAQ$SWBI

Smith & Wesson Brands Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Smith & Wesson's first quarter performance was strong, driven by consumer demand and disciplined cost control.

Smith & Wesson reported a strong first quarter with net sales of $114.2 million, a 35.4% increase over the comparable quarter last year. The company's profitability was supported by disciplined cost control. They anticipate tailwinds will allow them to continue to deliver strong results.

  • Net sales increased by 35.4% compared to the same quarter last year, reaching $114.2 million.
  • Gross margin was 26.6%, negatively impacted by manufacturing cost absorption and inventory reserve adjustments.
  • GAAP net income was $3.1 million, or $0.07 per diluted share.
  • Non-GAAP Adjusted EBITDAS was $17.5 million, or 15.3% of net sales.

Headline financials

Total Revenue

$114M

No prior period
EPS (adj)

$0.13

No prior period
Gross Margin

26.6%

No prior period
Adjusted EBITDAS

$17.5M

No prior period
Adjusted EBITDAS Margin

15.3%

No prior period
Capital Expenditures

-$32.1M

No prior period
Free Cash Flow

$8.57M

No prior period
Net Income

$3.12M

No prior period
Operating Income

$4.35M

No prior period
Gross Profit

$30.4M

No prior period
Cash & Equivalents

$55.5M

No prior period
Total Assets

$538M

No prior period
Stock-Based Comp

$1.28M

No prior period

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$114M

Q1 2024
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Smith & Wesson anticipates that innovation, its brand reputation, and lean channel inventories will allow them to continue to deliver strong results. They remain comfortable with their published financial model of annual gross margins of at least 32%.

Tailwinds

  • Innovation
  • Iconic brand’s reputation for quality
  • Lean channel inventories as we enter the traditionally busy fall season
  • Strong consumer demand for the Smith & Wesson brand at retail
  • Channel inventory of our products remained steady throughout the seasonally slow period this summer, indicating healthy pull through of our shipments at both distributor and retailer levels

Headwinds

  • Economic factors
  • Social factors
  • Political factors
  • Legislative factors
  • Regulatory factors

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 2024

Historical avgQ1 2024

+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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