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Smith & Wesson just reported another great quarter for gun sales

Akin Oyedele   

Smith & Wesson just reported another great quarter for gun sales

Smith & Wesson gun store

AFP

Gunmaker Smith & Wesson reported another strong quarter of gun sales on Tuesday.

The company topped expectations when it reported fiscal-second-quarter results after the closing bell.

It earned $143.2 million in net sales, up 32% year-on-year, beating the expectation for $139 million according to Bloomberg.

GAAP earnings per share was $0.22, versus $0.18 forecast by analysts.

The company said its gun sales rose 15.2% to $124.9 million.

"Higher revenue in our firearms division was driven by increased orders for our Smith & Wesson SDVE polymer pistols, M&P Shield and M&P BODYGUARD polymer pistols, and our long guns, especially our Thompson/Center Venture bolt-action rifles," CEO James Debney said in the earnings statement.

Its shares have rallied 126% year-to-date, and were slightly lower in volatile after-hours trading.

The shares closed up 4.7% on Tuesday. Along with shares of Sturm, Ruger & Company, they've been on a tear in recent days.

Following the shooting in San Bernardino, California last week that left 14 people dead, President Barack Obama has called for stricter measures to ensure that guns don't get into the wrong hands.

And on Monday, the Supreme Court declined to hear a challenge to a court decision that banned access to semiautomatic assault weapons in a Chicago suburb.

These, and other possible gun-control measures, are boosting demand for guns, as they may be harder to get in the future.

Smith & Wesson acknowledged strong demand for its guns since Obama took office in 2009, in its most recent annual statement.

Following the strong second quarter, the company raised its forecast for full-year revenues.

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