Smith & Wesson Brands Inc (NASDAQ:SWBI) shares are flat in Thursday’s after-hours session. Although the company announced better-than-expected financial results, moderate demand for firearms led to lower revenue year-over-year.
Smith & Wesson said fourth-quarter revenue decreased 43.9% year-over-year to $181.3 million, which beat the estimate of $179.85 million, according to data from Benzinga Pro. The company reported quarterly adjusted earnings of 82 cents per share, which beat the estimate of 69 cents per share.
“We delivered strong financial results, including gross profit and Adjusted EBITDAS margins for fiscal 2022 that exceeded prior year levels despite continued moderation in demand for firearms that led to lower net sales,” said Mark Smith, president and CEO of Smith & Wesson.
“Although we expect inflationary pressures to persist and for firearm market conditions to return to more normalized levels in fiscal 2023, we are confident in our flexible manufacturing model and expect to benefit from the pricing and product portfolio adjustments that we made during the surge,” Smith added.
SWBI Price Action: Smith & Wesson has traded between $36.60 and $13.02 over a 52-week period.
The stock initially surged on the earnings release, but it was down 0.07% in after hours at $14.35 at press time.
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