NASDAQ$SWBI

Smith & Wesson Brands Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a decrease in net sales compared to the previous year, but an increase compared to pre-pandemic levels, with gross margin and EPS exceeding pre-pandemic levels.

Smith & Wesson Brands, Inc. reported Q3 fiscal year 2023 financial results, with net sales of $129.0 million and EPS of $0.24 per share. The company's top-line increased sequentially and exceeded the comparable pre-pandemic quarter in fiscal 2020. Gross margin was 32.4%, and non-GAAP Adjusted EBITDAS was $23.7 million, or 18.4% of net sales.

  • Net sales were $129.0 million, a decrease of 27.4% from the comparable quarter last year, but 1.3% higher than the comparable quarter in fiscal 2020.
  • Gross margin was 32.4% compared with 39.6% in the comparable quarter last year and 28.0% in the comparable quarter in fiscal 2020.
  • GAAP net income was $11.1 million, or $0.24 per diluted share, compared with $30.5 million, or $0.65 per diluted share, for the comparable quarter last year.
  • Non-GAAP Adjusted EBITDAS was $23.7 million, or 18.4% of net sales, compared with $51.9 million, or 29.2% of net sales, for the comparable quarter last year.

Headline financials

Total Revenue

$129M

Previous: $178M-27.4%
EPS (adj)

$0.25

Previous: $0.69-63.8%
Gross Margin

32.4%

Previous: 39.6%-18.2%
Adjusted EBITDAS

$23.7M

Previous: $51.9M-54.3%
Capital Expenditures

-$64.6M

Previous: -$15.1M-328.0%
Free Cash Flow

-$85.8M

Previous: $97.2M-188.3%
Net Income

$11.1M

Previous: $30.5M-63.7%
Operating Income

$14.1M

Previous: $39.7M-64.4%
Gross Profit

$41.8M

Previous: $70.4M-40.6%
Cash & Equivalents

$44.6M

Previous: $107M-58.4%
Total Assets

$529M

Previous: $469M+12.8%
Stock-Based Comp

$1.25M

Previous: $1.2M+4.6%

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$129M

Q3 2023-27.4%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The company anticipates continued focus on long-term profitability, market share performance, and capital returns to stockholders.

Tailwinds

  • The firearm market remains healthy.
  • Strong participation growth in recent years.
  • Large and loyal base of core consumers.
  • Compelling view of the future for a leading brand.
  • Focus on managing the business for long-term profitability.

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 2023

Historical avgQ3 2023

+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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