NASDAQ$SWBI

Smith & Wesson Brands Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Smith & Wesson's Q4 2022 financial results were announced, revealing a decrease in net sales but strong gross margin and adjusted EBITDAS margin.

Smith & Wesson Brands, Inc. reported Q4 net sales of $181.3 million, a gross margin of 39.8%, and EPS of $0.79 per share. The adjusted EBITDAS margin was 31.8%, and the company had $120.7 million in cash on hand. The Board of Directors authorized a 25% increase in the quarterly dividend.

  • Net sales for Q4 were $181.3 million, a 43.9% decrease compared to the same quarter last year.
  • Gross margin was 39.8%, compared to 45.1% for the comparable quarter last year.
  • GAAP net income was $36.1 million, or $0.79 per diluted share, compared to $89.2 million, or $1.70 per diluted share, for the comparable quarter last year.
  • Non-GAAP Adjusted EBITDAS was $57.7 million, or 31.8% of net sales, compared to $125.6 million, or 38.9% of net sales, for the comparable quarter last year.

Headline financials

Total Revenue

$181M

Previous: $323M-43.9%
EPS (adj)

$0.82

Previous: $1.71-52.0%
Gross Margin

39.8%

Previous: 45.1%-11.8%
Adjusted EBITDAS

$57.7M

Previous: $126M-54.1%
Capital Expenditures

$8.88M

Previous: $3.67M+141.8%
Free Cash Flow

$16.7M

Previous: $115M-85.6%
Net Income

$36.1M

Previous: $89.2M-59.5%
Operating Income

$46.7M

Previous: $116M-59.8%
Gross Profit

$72.2M

Previous: $146M-50.5%
Cash & Equivalents

$121M

Previous: $113M+6.8%
Total Assets

$497M

Previous: $446M+11.4%
Stock-Based Comp

$971K

Previous: $1.31M-26.1%

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$181M

Q4 2022-43.9%vs Q4 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The company expects inflationary pressures to persist and for firearm market conditions to return to more normalized levels in fiscal 2023. They are confident in their flexible manufacturing model and expect to benefit from pricing and product portfolio adjustments.

Tailwinds

  • Flexible manufacturing model
  • Benefit from pricing adjustments
  • Benefit from product portfolio adjustments
  • Agile business model
  • Designed to quickly adapt to changes in the marketplace

Headwinds

  • Inflationary pressures expected to persist
  • Firearm market conditions expected to return to more normalized levels in fiscal 2023
  • Tougher year-over-year comparisons
  • Lower demand
  • Gross margin was down on a year-over-year basis

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 Q4 2022

Historical avgQ4 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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