What To Expect From Smith & Wesson’s (SWBI) Q2 Earnings

American firearms manufacturer Smith & Wesson (NASDAQ:SWBI) will be announcing earnings results tomorrow after market close. Here’s what to look for.

Smith & Wesson beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $159.1 million, up 9.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings estimates.

Is Smith & Wesson a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Smith & Wesson’s revenue to decline 10.3% year on year to $102.5 million, a reversal from the 35.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Smith & Wesson has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Smith & Wesson’s peers in the leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Latham’s revenues decreased 9.6% year on year, beating analysts’ expectations by 2.2%, and Harley-Davidson reported revenues up 12%, topping estimates by 27.2%. Latham traded up 42% following the results while Harley-Davidson was also up 8.7%.

Read our full analysis of Latham’s results here and Harley-Davidson’s results here.

There has been positive sentiment among investors in the leisure products segment, with share prices up 4.5% on average over the last month. Smith & Wesson’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $14.59).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.