SWBI

Interested in Smith & Wesson Brands, Inc.? Here are five stocks we like better. Strong first-quarter results: Fiscal 2027 Q1 sales rose 32.3% year over year to $112.6 million, while Smith & Wesson returned to profitability with net income of $2.6 million versus a $3.4 million loss a year earlier. Shipments outpaced market demand: Company shipments increased nearly 20%, exceeding adjusted NICS growth of 7.7%, with particularly strong gains in long guns, modern sporting rifles, Model 1854 rifles, law enforcement and international channels. Positive outlook maintained: Management expects second-quarter sales to grow about 10% year over year and reaffirmed fiscal 2027 revenue-growth guidance of approximately 5% to 7%, alongside planned capital expenditures of $45 million to $50 million. Value Alert: 3 High-Yield Stocks Trading at 52-Week Lows Smith & Wesson Brands (NASDAQ:SWBI) reported higher first-quarter fiscal 2027 sales and a return to profitability, citing demand across its consumer and professional firearms channels, increased product shipments and higher average selling prices. Net sales rose 32.3% year over year to $112.6 million, while net income totaled $2.6 million, or $0.06 per diluted share. That compared with a net loss of $3.4 million, or $0.08 per share, in the prior-year quarter. President and CEO Mark Smith said the company’s adjusted EBITDAS increased 86% from a year earlier. → Boarding Call: EHang Secures First-Mover Altitude Smith & Wesson Stock Falls on Earnings Miss, Tariff Woes “We are off to an excellent start to fiscal 2027 with strong first quarter performance,” Smith said, pointing to innovation, industry partnerships, operational execution and the company’s brand strength. Smith said overall adjusted NICS, a firearms-demand proxy based on FBI background-check data, increased 7.7% during the quarter compared with the prior-year period. Company shipments rose nearly 20%, which management said reflected market-share gains. → Medtronic’s Stars Are Aligning for a Price Recovery MarketBeat Week in Review – 6/26 - 6/30 Handgun unit shipments into the sporting-goods channel increased nearly 17%, compared with roughly 5% growth in NICS for the category. Channel inventories for the company’s handguns were flat during the period, which Smith said indicated continued retail pull-through. Long-gun unit shipments into the sporting-goods channel climbed almost 22%, outpacing a 10% increase in long-gun NICS. Channel inventories of the company’s long guns declined by about 5,000 units. Growth was led by modern sporting rifles, or MSRs, and was weighted toward May and June ahead of state-level regulatory changes, according to management. → Dutch Bros Sell-Off Creates a Growth Opportunity Shipments of the Model 1854 lever-action rifle doubled from the prior year, with Smith describing the result as evidence of a growing presence in the hunting segment. The company also reported strong double-digit gains among wholesale, big-box and buying-group customers, as well as high double-digit growth in law-enforcement and international shipments. Average selling prices for handguns were unchanged sequentially from the fourth quarter and increased nearly 9% from a year earlier. Long-gun average selling prices increased nearly 11% sequentially and more than 18% year over year. Smith attributed long-gun pricing gains partly to product mix, including Model 1854 shipments, while saying limited promotional activity supported pricing across the company’s product lines. New products represented 35% of total shipments during the quarter. Gross margin was 28.7%, up 2.8 percentage points from the prior-year quarter. Chief Financial Officer Deana McPherson said $2.9 million in tariff refunds accounted for 260 basis points of the increase. Higher production absorption was largely offset by volume-related spending, supplier cost increases and higher labor expenses. Operating expenses rose $3 million year over year to $28.1 million, driven by legal costs, profit-related compensation, higher selling expenses and freight, and increased advertising. Lower interest expense, resulting from lower net debt, also supported the company’s return to profitability. Distributor inventory declined 6.8% from the end of the prior quarter and 3.5% from July 2025 on a unit basis, McPherson said. Internal inventory stood at $181 million at quarter-end, down from $203 million a year earlier but up from $156 million at the end of the fourth quarter. The sequential increase reflected seasonal inventory building ahead of the fall and winter selling periods, as well as long-gun restocking after a strong fourth quarter. Cash used in operations was $8.8 million, compared with $8.1 million in the prior-year period. The company spent $11.9 million on capital projects during the quarter, up from $4.3 million a year earlier, and maintained its expectation for full-year capital expenditures of $45 million to $50 million. Management said this year’s capital spending is approximately $25 million above its historical run rate, reflecting investments at its Springfield, Massachusetts, facility and advanced manufacturing initiatives at multiple locations. Smith & Wesson ended the quarter with $25.2 million in cash and investments and $40 million borrowed under its line of credit. The board authorized a quarterly dividend of $0.13 per share for stockholders of record as of Sept. 17, with payment scheduled for Oct. 1. For the second quarter, the company expects sales to increase roughly 10% from the prior-year quarter and forecasts gross margin to improve by 200 to 300 basis points year over year. Operating expenses are expected to rise 10% to 15% from the first quarter because of volume-related customer and freight costs, research and development investment, and profit-related expenses. The company reaffirmed its fiscal 2027 revenue-growth outlook of approximately 5% to 7% over fiscal 2026. Smith said management expects growth to be steadier than the prior fiscal year, when state regulatory changes contributed to a strong fourth quarter for MSRs. Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities. Founded in 1852 by Horace Smith and Daniel B. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Smith & Wesson Brands Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Q1 Net Sales of $112.6 Million Q1 Gross Margin of 28.7% Q1 EPS of $0.06/Share Maryville, Tennessee--(Newsfile Corp. - September 3, 2026) - Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the first quarter of fiscal 2027, ended July 31, 2026. Financial Highlights Net sales were $112.6 million, an increase of $27.5 million, or 32.3%, from the comparable quarter last year. Gross margin was 28.7% compared with 25.9% in the comparable quarter last year. During the first quarter of fiscal 2027, we received $2.9 million in tariff refunds. These refunds favorably impacted gross margin by approximately 260 basis points and represented a non-recurring benefit. GAAP net income was $2.6 million, or $0.06 per diluted share, compared with a net loss of $3.4 million, or $0.08 per diluted share, for the comparable quarter last year. Non-GAAP net income was $2.6 million, or $0.06 per diluted share, compared with a net loss of $3.4 million, or $0.08 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation. For a detailed reconciliation, see the schedules that follow in this release. Non-GAAP Adjusted EBITDAS was $13.8 million, or 12.2% of net sales, compared with $7.4 million, or 8.7% of net sales, for the comparable quarter last year. Mark Smith, President and Chief Executive Officer, commented, "We are off to an excellent start to fiscal 2027. Continued solid demand for our products in both the consumer and professional channels in the first quarter were a direct result of our purposeful focus on innovation, the strength of our industry partnerships, operational execution, and the power of the iconic Smith & Wesson brand. We delivered significant year-over-year increases in all key financial metrics, including 32% growth in net sales and an increase in earnings per share to $0.06 from a loss of $0.08 last year. This continues to be a story about brand strength paired with a purposeful long-term strategy. With this momentum, we expect our second quarter to significantly outperform last year on both the top and bottom lines." Deana McPherson, Executive Vice President and Chief Financial Officer, commented, "We continue to expect a normal seasonal environment and strong demand for our products, resulting in anticipated sales for the second quarter of roughly 10% above last year. For the full year, we continue to expect that our fiscal 2027 revenue will grow approximately 5-7% over fiscal 2026. Consistent with our capital allocation strategy, our board of directors has authorized a $0.13 per share quarterly dividend, which will be paid to stockholders of record on September 17, 2026, with payment to be made on October 1, 2026." Conference Call and Webcast The company will host a conference call and webcast on September 3, 2026 to discuss its first quarter fiscal 2027 financial and operational results. Speakers on the conference call will include Mark Smith, President and Chief Executive Officer, and Deana McPherson, Executive Vice President and Chief Financial Officer. The conference call may include forward-looking statements. The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties in North America are invited to participate by dialing 1-877-704-4453. Interested parties from outside North America are invited to participate by dialing 1-201-389-0920. Participants should dial in at least 10 minutes prior to the start of the call. A live and archived webcast of the event will be available on the company's website at www.smith-wesson.com under the Investor Relations section. Reconciliation of U.S. GAAP to Non-GAAP Financial Measures In this press release, certain non-GAAP financial measures, including "non-GAAP gross profit," "non-GAAP gross margin," "non-GAAP operating expenses," "non-GAAP operating income," "non-GAAP net income," "non-GAAP net income per share - diluted," "Adjusted EBITDAS," "Adjusted EBITDAS Margin," and "free cash flow" are presented. We use these non-GAAP financial measures to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting our business than does GAAP measures alone. We believe these financial measures assist our board of directors, management, investors, and other users of the financial statements in comparing our results on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations. We believe it is useful for us and the reader to review, as applicable, both (1) GAAP measures that include (i) interest expense, net, (ii) income tax expense/(benefit), (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) relocation expense, and (vi) the tax effect of non-GAAP adjustments; and (2) the non-GAAP measures that exclude such information. We present these non-GAAP measures because we consider them an important supplemental measure of our performance. Our definition of these adjusted financial measures may differ from similarly named measures used by others. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for our GAAP measures. The principal limitations of these measures are that they do not reflect our actual expenses and may thus have the effect of inflating our financial measures on a GAAP basis. Change in Non-GAAP Financial Measure Prior to fiscal 2026, our calculation of Adjusted EBITDAS included an adjustment for interest expense. Beginning with the fourth quarter of fiscal 2026 presentation for all periods presented herein, we also included an adjustment for interest income such that Adjusted EBITDAS is fully adjusted for the effect of Interest expense, net as presented on the Consolidated Statements of Income. We believe that adjusting for both interest expense and interest income assists users of the financial statements in understanding the results of our core operations and comparing those results on a consistent basis from period to period. For the three months ended July 31, 2026, this change resulted in a decrease of $547,000 in the amount of Adjusted EBITDAS compared to the amounts that would have been reported using the previous methodology. For the three months ended July 31 2025, the change also resulted in a decrease of $632,000 in the amount of Adjusted EBITDAS compared to the amounts that were previously reported. About Smith & Wesson Brands, Inc. Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI) is a U.S.-based leader in firearm manufacturing and design, delivering a broad portfolio of quality handgun, long gun, and suppressor products to the global consumer and professional markets under the iconic Smith & Wesson® and Gemtech® brands. Additionally, the company provides manufacturing services such as forging and machining to third parties and offers world-class firearm training programs to Law Enforcement/Military departments and civilians at the Smith & Wesson Academy™ in Maryville, TN. For more information, call (844) 363-5386 or visit www.smith-wesson.com. Safe Harbor Statement Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, among others, that this continues to be a story about brand strength paired with a purposeful long-term strategy; we expect our second quarter to significantly outperform last year on both the top and bottom lines; we continue to expect a normal seasonal environment and strong demand for our products, resulting in sales for the second quarter roughly 10% above last year; and for the full year, we continue to expect that our fiscal 2027 revenue will grow approximately 5-7% over fiscal 2026. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, economic, social, political, legislative, and regulatory factors; the impact of tariffs; the potential for increased regulation of firearms and firearm-related products; actions of social activists that could have an adverse effect on our business; the impact of lawsuits; the demand for our products; the state of the U.S. economy in general and the firearm industry in particular; general economic conditions and consumer spending patterns; our competitive environment; the supply, availability, and costs of raw materials and components; our anticipated growth and growth opportunities; our strategies; our ability to maintain and enhance brand recognition and reputation; our ability to effectively manage and execute the relocation; our ability to introduce new products and the success of new products; the potential for cancellation of orders from our backlog; and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2026. Contact: [email protected](413) 747-3448 SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES(Dollars in thousands, except per share data) (Unaudited) SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME/(LOSS) TO NON-GAAP ADJUSTED EBITDAS(in thousands) (Unaudited) SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO FREE CASH FLOW(in thousands) (Unaudited) To view the source version of this press release, please visit https://www.newsfilecorp.com/release/312694

American firearms manufacturer Smith & Wesson (NASDAQ:SWBI) will be reporting results this Thursday after market hours. Here’s what to look for. Smith & Wesson beat analysts’ revenue expectations last quarter, reporting revenues of $178.4 million, up 26.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. Is Smith & Wesson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Smith & Wesson’s revenue to grow 16% year on year, a reversal from the 3.7% decrease it recorded in the same quarter last year. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Smith & Wesson has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Smith & Wesson’s peers in the consumer discretionary - leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ruger delivered year-on-year revenue growth of 19.3%, beating analysts’ expectations by 23%, and Clarus reported revenues up 1.6%, topping estimates by 5.2%. Ruger traded up 3.3% following the results while Clarus was also up 10.1%. Read our full analysis of Ruger’s results here and Clarus’s results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer discretionary - leisure products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.2% on average over the last month. Smith & Wesson is down 10.9% during the same time and is heading into earnings with an average analyst price target of $17.25 (compared to the current share price of $13.15). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.

Download the Complete Report Here Key Takeaways 2Q26 revenue beat and 290 bps of gross margin expansion strengthened the quality of PEW’s topline performance. PEW reported net revenue of $23.2 million in 2Q26, up 9.4% y/y from $21.2 million and ahead of the $22.3 million Street estimate by $0.9 million, or approximately 4.0%. Revenue increased $2.0 million while cost of goods sold increased only 5.8% to $20.1 million from $19.0 million. Gross profit consequently increased 39.4% y/y to $3.1 million from $2.2 million, while gross margin expanded approximately 290 bps to 13.5% from 10.6%. The divergence between 9.4% revenue growth and 39.4% gross profit growth was a key financial development in the quarter, reflecting AI-driven pricing optimization, improved sourcing, favorable product mix and the initial contribution of PEW Logistics. Firearms remained the primary revenue engine, although 2Q26 growth was entirely price and mix led. Firearms sales increased 8.5% y/y to $19.3 million, driven by a 12% increase in average selling price that more than offset a 4% decline in firearm sales volumes. The same pattern was evident through 1H26, with firearm revenue up 9.5% to $41.0 million as average selling prices increased 12% while volumes declined 3%. The mix shift toward higher-priced firearms therefore explains much of the revenue outperformance, with 2Q26 growth driven more by monetization and product mix than underlying unit demand. Non-firearms growth was also driven by substantially higher realized pricing and mix despite continued pressure on underlying volumes. Non-firearms revenue increased approximately 7.5% y/y to $3.6 million, reflecting a 30% increase in average selling price that offset an 18% decline in unit volumes, consistent with continued softness in ammunition and a richer mix of adjacent products. For 1H26, non-firearms revenue increased 9% to $7.8 million as average selling prices increased 25% while volumes declined 13%, reinforcing that category growth remained price and mix driven despite weaker underlying unit demand. Digital engagement remains healthy, with higher AOV and strong mobile penetration supporting monetization despite softer product volumes. PEW ended 2Q26 with approximately 1.4 million registered accounts and 17.1k monthly transactions across roughly 73,000 active SKUs, while average order value increased 7.4% y/y to $489. The platform generated approximately 10.3 million average monthly page views, maintained a 0.7% conversion rate, average session duration of 4.9 minutes and a 37% bounce rate. Mobile accounted for approximately 71% of sessions, 70% of transactions and 68% of revenue, versus roughly 67%, 70% and 64%, respectively, in 1Q26. Taken together, the data suggest PEW is monetizing a stable conversion funnel through higher basket values and sustained mobile engagement despite softer unit volumes. Customer acquisition remained unusually efficient despite double-digit traffic growth, supporting scalability of the digital model. Sales and marketing expense was only $0.3 million in 2Q26, or approximately 1.2% of revenue, compared with $0.2 million in 2Q25, even as revenue increased 9.4% and traffic increased 12.6%. The approximately 1% marketing intensity highlighted on the call reflects a lean acquisition profile supported by years of technology investment, supplier relationships and customer trust rather than dependence on aggressive paid acquisition. Customer lifetime value increased 4.1% y/y to $819.41, supporting continued customer monetization as traffic expands. The combination of 12.6% traffic growth, 4.1% LTV growth and ~1% marketing intensity remains an important advantage as PEW scales higher-margin platform services across the same digital customer and technology infrastructure. PEW Logistics expanded into the suppressor category with the addition of Backwoods Suppressors, marking its third manufacturer on the platform. KelTec established initial domestic firearms validation, Derya extended adoption to an international manufacturer, and Backwoods adds suppressors, further demonstrating that PEW’s compliance, fulfillment and technology stack can support a wider range of manufacturer requirements. The platform enables manufacturers to operate brand-owned, mobile-friendly DTC storefronts, retain customer relationships and first-party data, and access compliant fulfillment without building additional infrastructure internally. PEW’s existing FFL network places a licensed dealer within 15 miles of approximately 97% of the U.S. population, while average checkout-to-delivery time remains just under three business days. The expansion also provides exposure to a rapidly growing suppressor category, with more than 845,000 suppressor applications submitted in the first five months of 2026 following elimination of the $200 federal transfer tax in January. This combination gives manufacturers national distribution, regulatory workflows and customer-facing infrastructure while supporting PEW’s broader effort to scale its asset-light DTC fulfillment model across regulated product categories. The new fulfillment and headquarters facility remains on schedule for 4Q26 and should increase physical capacity ahead of continued scaling in both businesses. Acquired in 4Q25 for approximately $8.25 million, the facility expands PEW’s operational footprint by approximately 2.5x and is expected to increase capacity across both the core e-commerce business and PEW Logistics. The investment provides additional infrastructure to support future volume growth and should improve PEW’s ability to scale fulfillment without requiring a comparable increase in fixed infrastructure. Potential modernization of the lawful firearms purchasing process could reinforce PEW’s digital and compliance moat, although any benefit remains optionality. Recent federal proposals contemplate modernizing aspects of lawful firearms purchasing while maintaining background checks and other core safeguards, potentially reducing transaction friction without eliminating the compliance infrastructure required to complete firearm sales. PEW has spent more than 15 years building digital commerce, automated compliance and nationwide FFL connectivity, with its network placing a licensed dealer within 15 miles of approximately 97% of the U.S. population. A more digitally enabled purchasing framework could therefore support conversion and online-channel penetration in the core GrabAGun business while increasing the value proposition of PEW Logistics to manufacturers seeking compliant direct-to-consumer capabilities. The key strategic implication is that modernization could lower friction for consumers without lowering the compliance barrier for competitors. PEW’s regulatory sophistication has historically functioned as a barrier to entry in online firearms commerce rather than simply a cost of doing business, and that advantage could become more valuable if lawful purchasing processes become increasingly digital while existing safeguards remain intact. Companies with established compliance, fulfillment and FFL infrastructure could be better positioned than retailers or manufacturers attempting to build these capabilities from scratch, potentially supporting higher core conversion, faster online-channel migration and greater manufacturer demand for PEW Logistics. PEW reported a net loss in 2Q26 as higher operating expenses outweighed the improvement in gross profit. Net loss was $1.8 million versus net income of $0.8 million in the prior-year period, primarily reflecting higher G&A and other operating expenses associated with the company’s transition to a public company and investments supporting growth initiatives. Adjusted EBITDA was a loss of $1.7 million versus income of $0.9 million in 2Q25, as incremental spending on PEW Logistics and additional growth resources more than offset the benefit from higher gross profit. The forward revenue setup has strengthened, with Street estimates moving higher following 2Q26 while first-half performance continues to support the growth trajectory. Street estimates sourced from TIKR indicate that 3Q26 revenue is expected at approximately $23.3 million, while the 2026E revenue estimate has increased to $103.1 million from $101.9 million last quarter, a 1.2% raise, and 2027E revenue has increased to $109.3 million from $108.5 million, a 0.7% increase. PEW generated $49.1 million in the first six months of 2026, up 10.3% y/y, leaving approximately $54.0 million required in 2H26 to achieve the revised 2026 estimate. That compares with approximately $51.9 million generated in 2H25 and implies roughly 4% second-half growth. Seasonality remains relevant, with summer typically softer and Q4 and Q1 historically stronger periods, but the upward estimate revisions reinforce confidence in the current trajectory without requiring a material acceleration in second-half growth. Working capital remains broadly healthy despite the quarter-end cash decline, with supplier concentration improving and no evidence of inventory impairment. PEW ended 2Q26 with $97.5 million of cash, $9.3 million of inventory and $7.8 million of accounts payable, with cash down $8.9 million sequentially from $106.4 million in 1Q26, primarily reflecting payment timing as accounts payable fell from approximately $13.0 million. Major wholesale distributors represented approximately 38% of inventory and product costs in 2Q26 versus 39% in 2Q25, while concentration declined more meaningfully to 39% for 1H26 from 47% in 1H25. No inventory valuation provision was required during either 2026 or 2025, and the inventory returns reserve declined to $0.2 million from $0.3 million at year-end. This suggests the $9.3 million inventory balance remains broadly healthy while PEW’s supplier base has become somewhat more diversified on a first-half basis. With the quarter-end A/P movement characterized as timing related and expected to rebound, second-half cash conversion should provide a clearer indication of the underlying working-capital profile. Capital allocation remains disciplined, although all first-half repurchase activity occurred in 1Q26 rather than during the second quarter. PEW repurchased 769,518 shares for approximately $2.36 million, or $2.39 million including excise tax, during 1H26, with the entire amount purchased during 1Q26 and no common shares repurchased in 2Q26. The company had $8.7 million remaining under its original $20 million authorization at June 30, while shares outstanding declined to approximately 29.5 million from 30.0 million at year-end. With $97.5 million of cash and the stock trading below quarter-end cash per share of $3.31, the remaining authorization continues to provide meaningful flexibility, while management continues to balance repurchases against investment in PEW Logistics, the core e-commerce business and new facility, while maintaining expense discipline and flexibility for potential M&A. CFO transition preserves continuity while adding additional public-company finance experience. Co-Founder and CFO Justin Hilty is retiring after more than 15 years with PEW but will remain in an advisory role to support knowledge transfer, while Jonathan Terry will assume the CFO role after serving in a senior finance position at YETI. Terry previously served as CFO of Outschool, Outdoorsy/Roamly and RetailMeNot, and held senior finance leadership roles at Arrow Electronics, bringing experience across FP&A, capital allocation, M&A and public-company financial management. The transition comes as PEW manages approximately $97.5 million of cash and an $8.7 million remaining repurchase authorization, with the finance function moving into a more normalized public-company operating phase. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Stock is attractively valued as PEW’s current market cap remains below its cash balance, implying little value for the core business. At the 8/14 close, PEW’s market cap was approximately $75.3 million, compared with $97.5 million of cash and equivalents, and roughly $7.7 million of long-term debt. This implies a negative enterprise value of approximately $14.5 million, suggesting that the market is assigning little value to PEW’s digital platform, PEW Logistics and other growth initiatives. Peer valuation also supports the discount argument. PEW trades at 0.71x NTM P/Sales, below the peer group average, despite a cash-rich balance sheet, more than $100 million of expected 2026 revenue, and a developing higher-margin platform revenue stream through PEW Logistics. We believe the discount can narrow as PEW continues to grow its core e-commerce business, benefits from higher AOV and favorable product mix, scales PEW Logistics beyond its three current manufacturers, and begins leveraging its larger fulfillment facility from 4Q26. The $97.5 million cash balance also provides flexibility for buybacks and disciplined M&A. Rerating potential is tied to execution across both the core e-commerce platform and PEW Logistics. Key drivers include sustaining revenue growth through higher-value firearm sales and non-firearms growth, maintaining recent gross-margin gains through pricing and mix optimization, and reducing adjusted EBITDA losses as public-company costs normalize from 3Q26. Further PEW Logistics adoption, including additional manufacturers from its existing pipeline and expansion into new categories such as suppressors, could increase the contribution from higher-margin service revenue. Additional upside could come from greater utilization of the 2.5x larger fulfillment facility, opportunistic share repurchases, disciplined M&A and continued industry modernization. Read Exec Edge’s Initiation on PEW Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post GrabAGun: Topline Beat and 290 bps of Margin Expansion – Quarterly Update Report appeared first on ExecEdge.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Smith & Wesson Brands (SWBI) has drawn fresh attention after reporting fourth quarter and full year results that show higher sales, net income and earnings per share, alongside an affirmed quarterly dividend. See our latest analysis for Smith & Wesson Brands. The latest earnings and dividend news comes on top of strong recent momentum for Smith & Wesson Brands, with a 1-day share price return of 17.12% and a year to date share price return of 61.12%. The 1-year total shareholder return is 93.81%, while the 5-year total shareholder return shows a decline of 36.51%, highlighting a sharp recent recovery after a weaker longer-term experience for investors. If this kind of rebound has your attention, it can be useful to see what else is moving. You can start with our screener of 20 top founder-led companies After such a sharp move in Smith & Wesson Brands following its latest results, the key question is whether the current share price still reflects a discount to underlying value or if the market is already pricing in future growth. At the last close of $16.08, the most followed narrative for Smith & Wesson Brands points to a fair value of $15.00. This implies the stock trades above that estimate while still reflecting a detailed long term earnings outlook. Read the complete narrative. Curious how a single growth rate, a margin reset, and a future earnings multiple come together to justify that $15 fair value for Smith & Wesson Brands? The narrative ties revenue, profitability and valuation into one tight forecast, but the key assumptions sit just beneath the headline numbers. Result: Fair Value of $15 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the narrative around Smith & Wesson Brands still faces pressure from persistent promotional pricing that can weigh on margins and the cyclical, U.S.-focused firearms market. Find out about the key risks to this Smith & Wesson Brands narrative. The narrative around Smith & Wesson Brands so far leans on analyst targets that suggest the stock is close to fairly priced at around $15. Yet our DCF model points to a future cash flow value of $45.36, with SWBI trading at a 64.6% discount and labeled undervalued. Which set of assumptions do you find more convincing? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Smith & Wesson Brands for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 45 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With Smith & Wesson Brands presenting both appealing figures and open questions, it makes sense to review the underlying data yourself and decide how compelling the story really is, then weigh the 2 key rewards and 2 important warning signs Do not stop with Smith & Wesson Brands. Broaden your watchlist with fresh stock ideas built from clear data, focused filters and repeatable fundamentals. Spot potential mispricings early by scanning a curated set of screener containing 19 high quality undiscovered gems that might not yet be widely followed by the market. Prioritise resilience by reviewing 66 resilient stocks with low risk scores, which is designed to highlight companies with sturdier profiles when conditions turn choppy. Focus on quality and financial strength through the solid balance sheet and fundamentals stocks screener (48 results) and quickly surface businesses that pair cleaner balance sheets with underlying fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SWBI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Smith & Wesson Brands, Inc. has reported past fourth-quarter 2026 sales of US$178.39 million and net income of US$16.22 million, alongside full-year sales of US$523.85 million and net income of US$18.48 million, and confirmed a quarterly dividend of US$0.13 per share payable on July 15, 2026. The combination of higher quarterly and annual earnings per share from continuing operations and the continued dividend payout underlines management’s focus on both profitability and direct cash returns to shareholders. We’ll now examine how this stronger earnings performance and maintained dividend influence Smith & Wesson’s existing investment narrative and outlook. Uncover the next big thing with 24 elite penny stocks that balance risk and reward. To own Smith & Wesson Brands, you need to be comfortable with a cyclical, U.S.-focused firearms business where demand, pricing, and regulation can swing earnings meaningfully. The latest quarter’s higher sales and net income help the near term story by relieving some margin and cash flow concerns, but they do not remove the key risk of promotional pressure and potential demand shocks in a still-competitive, promotion-heavy market. The reaffirmed US$0.13 quarterly dividend alongside improved quarterly and full-year earnings is the most relevant development here, as it ties stronger recent profitability directly to ongoing cash distributions. For investors, that combination sharpens the focus on whether earnings can consistently support both the dividend and planned investments, especially with prior concerns around margin compression and higher borrowing costs still in the background. Yet investors should also be aware that heavy reliance on U.S. firearm demand and potential regulatory shifts could... Read the full narrative on Smith & Wesson Brands (it's free!) Smith & Wesson Brands' narrative projects $565.9 million revenue and $49.1 million earnings by 2029. This requires 5.2% yearly revenue growth and a $38.2 million earnings increase from $10.9 million today. Uncover how Smith & Wesson Brands' forecasts yield a $15.00 fair value, a 7% downside to its current price. Some of the most optimistic analysts were already expecting revenue of about US$514 million and earnings near US$43 million by 2028, so compared with concerns about ongoing U.S. regulatory and demand risk, this new earnings beat could either reinforce that bullish view or force a rethink of how realistic those prior expectations really were. Explore 4 other fair value estimates on Smith & Wesson Brands - why the stock might be worth as much as $16.00! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Smith & Wesson Brands research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free Smith & Wesson Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Smith & Wesson Brands' overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Capitalize on the AI infrastructure supercycle with our selection of the 49 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SWBI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Net Sales: $178.4 million, up 26.7% year over year. Adjusted EBITDA: Increased 31.7% year over year. Adjusted EPS: Up nearly 77% year over year. Cash from Operations: Increased by nearly $34 million compared to last year. Full Fiscal Year Revenue Growth: Up over 10% year over year. Full Fiscal Year Adjusted EPS: Increased more than 25%. Full Fiscal Year Adjusted EBITDA: Up 7%. Debt Reduction: Retired $60 million in debt, closing the year with $20 million in debt. Handgun Unit Shipments: Increased 23% in Q4. Long Gun Unit Shipments: Increased 28.7% in Q4. Gross Margin: 29.8%, up 1 percentage point from last year. Net Income: $16.2 million, up $7.6 million from the prior year. Earnings Per Share (EPS): $0.36, up from $0.19 the prior year. Cash Generated from Operations (Q4): $74.6 million. Capital Expenditures (Q4): $4.8 million. Net Free Cash (Q4): $69.7 million. Dividends Paid (Q4): $5.8 million. Revolving Line of Credit Repayment (Q4): $55 million. Cash Position at Quarter End: $28.2 million. Net Cash Position: $8.2 million. Full Fiscal Year Cash from Operations: $114 million. Full Fiscal Year Capital Expenditures: $23.7 million. Full Fiscal Year Net Free Cash Generated: $90.4 million. Quarterly Dividend: $0.13 per share. Warning! GuruFocus has detected 7 Warning Signs with SWBI. Is SWBI fairly valued? Test your thesis with our free DCF calculator. Release Date: June 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net sales increased nearly 27% year over year, showcasing strong consumer demand and effective strategic execution. Adjusted EBITDA increased by 31.7%, and adjusted EPS was up nearly 77%, indicating improved profitability. Smith & Wesson Brands Inc (NASDAQ:SWBI) reduced its debt significantly, closing the year with just $20 million in debt versus $80 million at the end of fiscal 2025. The company achieved substantial market share growth, with Handgun shipments into the sporting goods channel surging 23% versus a NICS increase of only 1.1%. New products accounted for nearly 38% of shipments during Q4 and the full fiscal year, highlighting successful innovation and product development. Operating expenses increased by $4.3 million due to higher profit-related compensation costs, freight-related costs, and R&D expenses. The company anticipates a typical summer season with potentially lower demand, which could impact Q1 performance. Average selling prices for Handguns are expected to decline by approximately 5% in the first quarter of fiscal 2027. The effective tax rate is expected to be approximately 30% in fiscal 2027, higher than in fiscal 2026 due to prior-year favorable adjustments. Capital expenditures are expected to increase significantly in fiscal 2027 due to planned investments in the Springfield facility, which may impact cash flow. Q: Can you elaborate on the segments where Smith & Wesson saw incremental growth, particularly in areas they haven't historically competed in? A: Mark Smith, President and CEO, explained that the company saw significant growth in the Hunting category, particularly with the introduction of the 1854 product line. Additionally, they experienced success in the Long Gun segment, specifically with the FPC carbine, marking new entries into these subcategories. Q: What factors contributed to the improvement in gross profit margin during the fourth quarter? A: Mark Smith noted that the improvement was driven by increased production volume, a 2% to 3% price increase, and better absorption due to higher manufacturing output. Deana McPherson, CFO, added that the company had previously reduced inventory levels, and the subsequent increase in production volume significantly boosted margins. Q: How were the January price increases received by distributors, and what role did new products play in this? A: Mark Smith stated that the price increase was implemented smoothly without any significant pushback, highlighting the strength of the brand and the successful introduction of new products. These new products not only supported the price increase but also enhanced the overall brand perception, benefiting both new and existing product lines. Q: What are Smith & Wesson's plans for capital allocation, particularly regarding investments in Springfield and other financial strategies? A: Mark Smith explained that the company plans to invest in the Springfield facility to expand capacity and enhance operational efficiency. This includes acquiring 20 new CNC machines. The company remains committed to investing in the business for high returns, maintaining dividends, and being opportunistic with share buybacks. Q: Why is the capital expenditure focused on Springfield rather than the newer Tennessee facility? A: Mark Smith clarified that Springfield serves as the machining center of excellence, housing skilled labor and machining operations. The Tennessee facility focuses on distribution, assembly, and other operations. The investment in Springfield is strategic to maintain and enhance machining capabilities, which are central to the company's long-term plans. For the complete transcript of the earnings call, please refer to the full earnings call transcript.