Smith & Wesson Posted High 4th Quarter Totals

June 19, 2009 – 1:51 pm – No Comment

Domestic firearms manufacturer Smith & Wesson reported a fiscal year ending high, above Wall Street expectations and 12 percent higher stock trading than forecast. 2009 Fourth quarter revenue (of a fiscal year that goes April to April) rose 20 percent to $99.5 million. Experts had only predicted an average of $90.8 million.

“Demand for our handguns and tactical rifles remained strong throughout the fourth quarter as evidenced by our revenue as well as out backlog balance,” said a statement released by Smith & Wesson. Their backlog grew to over $200 million that quarter.

Smith & Wesson is a top provider of standard issue firearms to many military and law enforcement teams (reminiscent of “Dirty Harry”, who carried a Smith & Wesson .44 magnum), helping keep sales up, even in the worst of times. Their M&P 40 caliber semiautomatic is named M&P, standing for military and police, for a reason. It is their top sale to law enforcement and the public. As of 2007, 216 police departments had committed to carrying their products standard, according to the company. They hope to further expand these totals as they innovate new, more efficient weapons that showcase their unique style. They offer other types and calibers of semiautomatics, old and contemporary style revolvers, rifles, shotguns, and custom engraved firearms.

Firearms enthusiasts enjoy Smith & Wesson and competitor Winchester because they are some of the best quality domestic firearms. Smith & Wesson also sells better in the southern United States, simply because that is where firearms and second amendment adherence are more prevalent.

Smith & Wesson acquired Thompson/Center firearms in order to branch further into new product lines like long guns, interchangeable barrel single-shot pistols, muzzle loading rifles, and semiautomatic rimfire rifles. Thompson/Center also allows Smith & Wesson to delve into sales of more contemporary style firearms while maintaining their classic style under their name. The acquisition occurred in January of 2007.

To further ensure market domination, they said they are also buying into Franklin, Tennessee-based Universal Safety Response in a deal involving cash and stock worth more than $26 million in order to try to branch out into the perimeter security market. Universal Safety Response is a full-service security integrator and barrier manufacturer and installer, dealing in high end, on site security for businesses and homes.

Smith & Wesson stocks have traded as low as $1.53 and as high as $7.52 over the last year. They are currently holding at $4.93, a decent price in such a volatile market.