Smith & Wesson Brands Reports Q1 Earnings Results for FY2024
September 13, 2023
🌥️Earnings Overview
On September 7 2023, SMITH & WESSON BRANDS ($NASDAQ:SWBI) reported their earnings results for Q1 of FY2024, which ended on July 31 2023. The total revenue for the quarter was USD 114.2 million, an increase of 35.4% from the same time period the year prior. However, net income decreased by 5.7% to USD 3.1 million year over year.
Share Price
The stock opened at $10.8 and closed at $10.5, a decrease of 3.0% from the previous closing price of 10.8. This marked the lowest closing price since the start of Q1 and the lowest that the stock has been in the past year. The report came as a surprise to many investors as SMITH & WESSON BRANDS had reported strong earnings throughout the year, indicating that the company might have missed its targets for the quarter. Investors were concerned about the implications of this report, with some speculating whether this marks a longer-term decline in the company’s performance.
However, analysts were quick to point out that this decline is likely due to external factors, such as the continued uncertainty in the global economy and increasing competition in the firearm market. SMITH & WESSON BRANDS has long been a leader in the industry and is expected to continue its dominance in the coming quarters. As such, many investors remain optimistic about the future prospects of the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SWBI. More…
| Total Revenues | Net Income | Net Margin |
| 509.09 | 36.68 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SWBI. More…
| Operations | Investing | Financing |
| 50.22 | -110.26 | 5.07 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SWBI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 537.66 | 154.95 | 8.29 |
Key Ratios Snapshot
Some of the financial key ratios for SWBI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -15.1% | -24.6% | 9.5% |
| FCF Margin | ROE | ROA |
| -11.8% | 7.9% | 5.6% |
Analysis
At GoodWhale, we have done an extensive analysis of SMITH & WESSON BRANDS’ financials. Based on our Star Chart, we have classified SMITH & WESSON BRANDS as a ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. This makes SMITH & WESSON BRANDS a great asset for investors looking for steady income and return on their investment. SMITH & WESSON BRANDS also scores a high 10/10 on our health score, which means they are able to manage their cashflows and debt efficiently and can ride out any crisis without risk of bankruptcy. In terms of other factors, SMITH & WESSON BRANDS is strong in asset and profitability, medium in dividend, and weak in growth. With these metrics in mind, SMITH & WESSON BRANDS is a great investment for investors looking for long-term stability and consistent returns. More…
Peers
In the world of firearms, there are many different brands that compete for market share. Smith & Wesson is one of the most well-known brands, and they compete against other brands such as AMMO Inc, Sturm Ruger & Co Inc, and Lubawa SA. Each of these companies has their own strengths and weaknesses, but in the end, it is the consumer that decides which brand they prefer.
– AMMO Inc ($NASDAQ:POWW)
As of 2022, the market cap for AMMO Inc is 369.6M. The company has a Return on Equity of 5.44%. AMMO Inc is a company that manufactures and sells ammunition.
– Sturm Ruger & Co Inc ($NYSE:RGR)
Sturm Ruger & Co Inc is a publicly traded company with a market capitalization of 962.3 million as of 2022. The company designs, manufactures, and sells firearms and ammunition in the United States. The company’s products include rifles, pistols, revolvers, and shotguns. The company has a return on equity of 21.12%.
– Lubawa SA ($LTS:0LVN)
Lubawa SA is a publicly traded company with a market capitalization of 386.19M as of 2022. The company’s return on equity (ROE) is 6.91%. Lubawa SA is engaged in the manufacture and sale of textile and non-woven products. The company’s products are used in a variety of industries, including automotive, construction, and medical.
Summary
Despite SMITH & WESSON BRANDS’ strong revenue growth of 35.4% year over year for the first quarter of fiscal 2024, the company reported a decrease in net income of 5.7% compared to the previous year. This appears to have had a direct effect on the stock price, which moved down on September 7th. Investors should be cautious when considering investing in the company, as there are a number of factors that could influence their profitability. It’s important to take into account the current macroeconomic environment as well as the company’s competitive landscape in order to gain a better understanding of the company’s long-term prospects.
Additionally, investors should analyze SMITH & WESSON BRANDS’ financial statements and cash flow to assess their ability to meet future obligations and generate returns.
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