25 June 2013, by Tess Stynes (marketwatch)
Smith & Wesson Holding Corp.'s fiscal fourth-quarter earnings more than doubled amid continued strong demand that resulted in double digit sales growth and higher margins.

The gun maker has been helped by strong demand in recent quarters, as gun enthusiasts stocked up on weapons amid a heightened chance of stricter regulations following last December's mass shooting in Newtown, Conn.

The company again reported that it was unable to keep up with demand across its firearm product lines, despite expanded production capacity, resulting in additional growth in its order backlog, but didn't provide details about the size of its backlog.

For the new fiscal year, the company projected per-share earnings from continuing operations of $1.30 and $1.35 on net sales of $605 million and $615 million, well above recent estimates of analysts polled by Thomson Reuters for $1.18 and $590 million, respectively.

For the current fiscal quarter, Smith & Wesson forecast per-share earnings from continuing operations of 34 cents to 37 cents, including six cents related to stock and bond repurchases, on net sales of $162 million to $167 million.

Analysts recently expected 29 cents and $141 million, respectively.

President and Chief Executive James Debney said "Significant increases in our manufacturing capacity, combined with continued robust consumer demand for firearms, resulted in higher sales of our most popular M&P products."

For the quarter ended April 30, Smith & Wesson reported a profit of $25.2 million, or 38 cents a share, up from $12.5 million, or 19 cents a share, a year earlier.

Earnings from continuing operations were up at 44 cents from 27 cents.

The latest period included a product-recall-related charge of three cents a share. Revenue climbed 38%, to $178.7 million.

Smith & Wesson recently expected per-share earnings from continuing operations of 44 cents on $179 million in net sales.

Gross margin rose to 38.3% from 36.1% amid improved sales volume.

Shares were up by a penny, at $10 in recent after-hours trading. Through Tuesday's close, the stock is up 45% in the past 12 months.