Smith & Wesson's quarterly earnings triple
Smith & Wesson's fiscal 3Qr benefits from surge in gun sales amid calls for tougher controls
SPRINGFIELD, Mass. (AP) -- Smith & Wesson Holding Corp.'s earnings more than tripled in the firearms maker's latest quarter as consumers scrambled to buy guns while U.S. lawmakers debated whether to impose a ban on some weapons.
The fiscal third-quarter results issued Tuesday covered the three months ending in January — a period that included a harrowing massacre in December at a Connecticut elementary school where 20 children and six adults were killed by a gunman shooting a rifle similar to a military weapon.
The massacre prompted President Barack Obama to call for tougher gun-control laws, triggering a rush to buy more firearms.
Smith & Wesson, which is based in Springfield, Mass., earned $14.6 million, or 22 cents, per share, during the quarter. That compared with net income of $4.4 million, or 7 cents per share, at the same time last year.
Revenue rose 39 percent from last year to $136 million.
"Performance gains were driven by continued robust consumer demand for firearms," said Smith & Wesson CEO James Debney.
The showing was in line with analyst projections, but wasn't good enough to satisfy those worried that Smith & Wesson's future growth will slow if U.S. lawmakers crack down on gun sales.
Smith & Wesson's stock slipped 28 cents, or 2.7 percent, to $9.94 in extended trading. The stock stood at $9.54 before the Connecticut school shootings.
