Shares of Smith & Wesson (SWBI) sank in after-hours trading after the firearms company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at $0.20, which missed analysts’ consensus estimate of $0.23 per share. In addition, sales decreased by 11.6% year-over-year, with revenue hitting $140.76 million. This also missed analysts’ expectations of $152.41 million. CEO Mark Smith explained that the fourth quarter turned out to be tougher than expected because of challenges in the overall economy and the firearm industry.
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Sales and production were both lower, and changes in the types of products sold also hurt profit margins. However, the company managed to reduce the impact on earnings by cutting costs and using its flexible manufacturing setup. Smith noted that many consumers are still being cautious with spending due to the economy, although new and lower-priced products are selling well. He added that while the current environment remains difficult, the company is in a strong position to manage through it.
2026 Outlook
Separately, CFO Deana McPherson said that high inflation, expensive interest rates, and worries about tariffs have made the firearm market weaker, although new products have helped the company stay ahead in the parts of the market where it competes. As a result, she believes that demand for firearms in Fiscal Year 2026 will likely be similar to what was seen in 2025. However, ongoing economic pressures could continue to affect sales.
Is SWBI Stock a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for SWBI stock. Indeed, the summary section pictured below shows that 11 indicators are Bullish, compared to four Neutral and seven Bearish indicators. However, this is likely to change following today’s earnings results.
