NASDAQ$SWBI

Smith & Wesson Brands Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

American Outdoor Brands Corporation reported financial results for the third quarter fiscal 2020, ended January 31, 2020.

American Outdoor Brands Corporation reported a 2.9% increase in quarterly net sales, reaching $166.7 million. The company's GAAP net income was $5.7 million, or $0.10 per diluted share, compared to a GAAP net loss of $5.7 million, or $(0.10) per diluted share, for the comparable quarter last year.

  • Quarterly net sales increased by 2.9% to $166.7 million.
  • Gross margin was 33.1%, or 35.3% excluding a change related to federal excise tax assessment.
  • GAAP net income was $5.7 million, or $0.10 per diluted share, compared to a net loss of $5.7 million last year.
  • Non-GAAP Adjusted EBITDAS was $22.4 million, or 13.4% of net sales.

Headline financials

Total Revenue

$167M

Previous: $162M+2.9%
EPS (adj)

$0.13

Previous: $0.16-18.8%
Gross Margin

33.1%

Previous: 33.4%-0.9%
Adjusted EBITDAS

$22.4M

Previous: $24.4M-8.2%
Capital Expenditures

-$11.8M

Previous: -$26M+54.8%
Free Cash Flow

-$36.8M

Previous: -$5.24M-601.6%
Net Income

$5.73M

Previous: -$5.73M+200.1%
Operating Income

$10.9M

Previous: -$2.03M+636.5%
Gross Profit

$55.2M

Previous: $54.1M+2.1%
Cash & Equivalents

$46.1M

Previous: $37.5M+23.0%
Total Assets

$808M

Previous: $773M+4.6%
Stock-Based Comp

-$1.67M

Previous: $2.12M-178.9%

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$167M

Q3 2020+2.9%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company provided net sales and earnings per share guidance for the three months ending April 30, 2020, and for the year ending April 30, 2020.

Tailwinds

  • Net sales are expected to be between $205 million and $215 million for the three months ending April 30, 2020.
  • GAAP income per share - diluted is expected to be between $0.17 and $0.21 for the three months ending April 30, 2020.
  • Non-GAAP income per share - diluted is expected to be between $0.33 and $0.37 for the three months ending April 30, 2020.
  • Full year revenue for Firearms segment is expected to be between $502.0 million and $507.0 million.
  • Full year revenue for Outdoor Products & Accessories segment is expected to be between $170.0 million and $175.0 million.

Headwinds

  • Guidance takes into account several factors, including expected impacts from the Coronavirus.
  • Intercompany eliminations are expected to be approximately $22.0 million.
  • Potential for increased regulation of firearms and firearm-related products.
  • Actions of social activists that could have an adverse effect on our business.
  • The impact of lawsuits.

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 Q3 2020

Historical avgQ3 2020

+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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