On March 03, Smith & Wesson Brands Inc. (SWBI) posted its financial results for the third quarter of fiscal 2022, which ended on January 31, 2022. Consequently, the stock plunged deep in the after-hours on Thursday.
It seems investors were already expecting not-so-good quarterly earnings as the stock was in the red during the regular session as well. While the anticipation did cause the stock to trade at 149% of its average volume, SWBI lost 1.05% during the session. Thus, the stock closed the session at $17.89 as 1.7 million shares traded hands. Following the announcement, the stock suffered a further loss of 19.73% in the after-hours. Hence, SWBI stock had a price of $14.36 per share in the after-hours on Thursday.
The firearms producer, Smith & Wesson Brands Inc. is a holding company founded in 1852. Currently, the company has a market capitalization of $873.17 million with its 48.29 million shares outstanding.
SWBI’s Fiscal Q2 2022
For fiscal Q2 2022, the company reported net sales of $177.7 million with a decline of $79.9 million or 31.0% YOY. In comparison to fiscal 2020’s Q2, the net sales increased by 139.5%.
Moreover, the company had a gross margin of 39.6% in fiscal Q2 2022, against 42.6% in the year-ago quarter.
SWBI had a non-GAAP net income of $32.9 million in fiscal Q2 2022, against $62.4 million in the prior-year period. Thus, the non-GAAP net income per diluted share was $0.69 and $1.12 in fiscal Q2 of 2022 and 2021 respectively.
Furthermore, the company reported non-GAAP adjusted EBITDAS of $51.9 million in the quarter, which was 29.2% of net sales. Comparatively, the same was $89.9 million or 34.9% of net sales in the year-ago quarter.
Additionally, the company bought 2,788,152 of its common stock shares for $50.0 million during the quarter.
SWBI’s Headquarter Relocation
On September 30, 2021, the company announced the relocation of its headquarters and most operations to Maryville, Tennessee in 2023. Having been based in Springfield, Massachusetts since 1852, the reason for the relocation is proposed new legislation in Massachusetts. If enacted, the legislation will prohibit the manufacturing of certain firearms in the state. Therefore, the company decided upon its relocation for the first time since it was incorporated. The new location was chosen after careful consideration of a multitude of factors.
