NASDAQ$SWBI

Smith & Wesson Brands Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Smith & Wesson reported a decrease in net sales but demonstrated meaningful profitability.

Smith & Wesson Brands, Inc. announced its Q3 fiscal year 2022 financial results, revealing a decrease in net sales compared to the previous year, but an increase compared to two years prior. The company highlighted its ability to deliver meaningful profitability despite changing market conditions, with a focus on returning value to stockholders.

  • Net sales were $177.7 million, a 31.0% decrease from the comparable quarter last year.
  • Gross margin was 39.6% versus 42.6% in the comparable quarter last year.
  • Quarterly GAAP net income was $30.5 million, or $0.65 per diluted share.
  • Quarterly non-GAAP Adjusted EBITDAS was $51.9 million, or 29.2% of net sales.

Headline financials

Total Revenue

$178M

Previous: $258M-31.0%
EPS (adj)

$0.69

Previous: $1.12-38.4%
Gross Margin

39.6%

Previous: 42.6%-7.0%
Adjusted EBITDAS

$51.9M

Previous: $89.8M-42.2%
Capital Expenditures

-$15.1M

Previous: $3.41M-542.0%
Free Cash Flow

$97.2M

Previous: $57M+70.4%
Net Income

$30.5M

Previous: $62.3M-51.0%
Operating Income

$39.7M

Previous: $80.4M-50.6%
Gross Profit

$70.4M

Previous: $110M-35.8%
Cash & Equivalents

$107M

Previous: $59.7M+79.8%
Total Assets

$469M

Previous: $406M+15.6%
Stock-Based Comp

$1.2M

Previous: $1.32M-9.0%

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$178M

Q3 2022-31%vs Q3 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The company's forward-looking statements reflect their beliefs regarding market trends, business model capabilities, long-term commitments to stockholders, and the strengthening of their foundation through strategic responses to demand surges.

Tailwinds

  • The firearms market seems to now be following pre-pandemic historical demand patterns.
  • The macro demand pattern is exactly what our business model is designed to accommodate.
  • We have set a very solid business foundation for long-term success.
  • Our long-term commitment is to continue to return value to stockholders through regular fixed dividends and share repurchases
  • As a result of certain accomplishments, we are well positioned to do so.

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 Q3 2022

Historical avgQ3 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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