NASDAQ$SWBI

Smith & Wesson Brands Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter of fiscal 2024 financial results reported with net sales of $125.0 million and adjusted EPS of $0.14 per share.

Smith & Wesson Brands, Inc. reported a 3.2% increase in net sales to $125.0 million for the second quarter of fiscal 2024. EPS was $0.05/Share and Adjusted EPS was $0.14/Share. The company's Adjusted EBITDAS margin was 15.5%.

  • Net sales increased by 3.2% compared to the same quarter last year, reaching $125.0 million.
  • Gross margin was 25.4%, a decrease from 32.4% in the comparable quarter last year.
  • GAAP net income was $2.5 million, or $0.05 per diluted share, down from $9.6 million, or $0.21 per diluted share, in the prior year's quarter.
  • Non-GAAP Adjusted EBITDAS was $19.3 million, representing 15.5% of net sales, compared to $25.6 million, or 21.1% of net sales, for the comparable quarter last year.

Headline financials

Total Revenue

$125M

No prior period
EPS (adj)

$0.14

No prior period
Gross Margin

25.4%

No prior period
Adjusted EBITDAS

$19.3M

No prior period
Capital Expenditures

-$67M

No prior period
Free Cash Flow

-$29.2M

No prior period
Net Income

$2.5M

No prior period
Operating Income

$3.77M

No prior period
Gross Profit

$31.8M

No prior period
Cash & Equivalents

$44.2M

No prior period
Total Assets

$573M

No prior period
R&D Expense

$1.72M

No prior period
Stock-Based Comp

$1.48M

No prior period

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$125M

Q2 2024
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The company expects to be in a very strong position to drive returns for its stockholders throughout the second half of fiscal 2024 and in fiscal 2025 and anticipates that the temporary margin headwinds will abate in the fourth quarter.

Tailwinds

  • Company expects to be in a very strong position to drive returns for its stockholders throughout the second half of fiscal 2024
  • Company expects to be in a very strong position to drive returns for its stockholders in fiscal 2025
  • Demand levels expected to remain elevated through their traditionally busy season
  • Company has a strong balance sheet
  • A significant reduction in capex on the horizon as they wind down the major investment in their new facility in Tennessee

Headwinds

  • Gross margin continues to be temporarily pressured by fixed-cost absorption
  • Gross margin continues to be temporarily pressured by inflationary factors
  • Gross margin continues to be temporarily pressured by inventory reserve adjustments
  • Potential for increased regulation of firearms and firearm-related products
  • Actions of social activists that could have an adverse effect on our business

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 Q2 2024

Historical avgQ2 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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