NASDAQ$SWBI

Smith & Wesson Brands Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Smith & Wesson's Q4 2023 financial results were announced, featuring net sales of $144.8 million and EPS of $0.28 per share.

Smith & Wesson reported Q4 net sales of $144.8 million, a decrease of 20.1% compared to the same quarter last year. EPS was $0.28, and adjusted EPS was $0.32. The company's gross margin was 29.0%, with an adjusted EBITDAS margin of 20.9%.

  • Q4 net sales reached $144.8 million, a 20.1% decrease year-over-year.
  • Gross margin was 29.0%, compared to 39.8% in the prior year's quarter.
  • GAAP net income was $12.8 million, or $0.28 per diluted share.
  • Non-GAAP Adjusted EBITDAS was $30.3 million, representing 20.9% of net sales.

Headline financials

Total Revenue

$145M

Previous: $181M-20.1%
EPS (adj)

$0.32

Previous: $0.82-61.0%
Gross Margin

29.0%

Previous: 39.8%-27.1%
Adjusted EBITDAS

$30.3M

Previous: $57.7M-47.5%
Capital Expenditures

$25M

Previous: $8.88M+181.2%
Free Cash Flow

$13M

Previous: $16.7M-21.9%
Net Income

$12.8M

Previous: $36.1M-64.5%
Operating Income

$17.8M

Previous: $46.7M-61.8%
Gross Profit

$42M

Previous: $72.2M-41.9%
Cash & Equivalents

$53.6M

Previous: $121M-55.6%
Total Assets

$541M

Previous: $497M+8.8%
Stock-Based Comp

$1.24M

Previous: $971K+28.0%

Revenue & EPS history

Smith & Wesson · Revenue · Quarterly

$145M

Q4 2023-20.1%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Smith & Wesson anticipates that consumer demand in fiscal year 2024 will resemble that of fiscal year 2023, but expects increased shipments due to reduced inventory levels in the distribution channel during the first half of the previous fiscal year.

Tailwinds

  • Anticipate an increase in shipments.
  • Inventory in distribution channel continued to decline from January.
  • Relocation nearing final phase.
  • Board authorized $0.12 per share quarterly dividend.
  • Maintaining leadership position at the sales counter with the firearm consumer.

Headwinds

  • Consumer demand to resemble demand in fiscal 2023.
  • Economic factors.
  • Social factors.
  • Political factors.
  • Legislative and 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 Q4 2023

Historical avgQ4 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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