Smith & Wesson(SWBI, $24.88) misses revenue expectations, despite earnings beat
Shares of Smith & Wesson fell sharply after hours Wednesday, after the gunmaker posted first-quarter revenue that fell short of analysts’ expectations, even as earnings exceeded estimates.
The company’s first-quarter non-GAAP earnings came in at $1.57 per share, compared to the $1.26 per share expected by analysts polled buy FactSet.
However, revenue of $274.6 million was below the $278.6 million expected by analysts.
The company's gross margin improved to 47.3% from 40.2% a year ago.
"We believe we are well positioned for the ever-changing market conditions in our industry, to maintain our leadership position in the industry, and continue delivering impressive profitability in any environment," CEO Mark Smith said.
SWBI's RSI Indicator recovers from oversold territory
The RSI Oscillator for SWBI moved out of oversold territory on May 02, 2022. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In 25 of the 29 cases the stock moved higher. This puts the odds of a move higher at 86%.
Current price $14.14 crossed the resistance line at $17.56 and is trading between $17.56 resistance and $13.21 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -5% Downtrend, while the week of 05/09/22 - 05/16/22 shows a +2% Uptrend.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 52 cases where SWBI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Moving Average Convergence Divergence (MACD) for SWBI just turned positive on May 12, 2022. Looking at past instances where SWBI's MACD turned positive, the stock continued to rise in 37 of 48 cases over the following month. The odds of a continued upward trend are 77%.
Following a +4.20% 3-day Advance, the price is estimated to grow further. Considering data from situations where SWBI advanced for three days, in 217 of 292 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
SWBI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on May 16, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on SWBI as a result. In 60 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SWBI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
The Aroon Indicator for SWBI entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 67%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.81.
The Tickeron SMR rating for this company is 11 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 13 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.972) is normal, around the industry mean (4.596). P/E Ratio (2.868) is within average values for comparable stocks, (193.940). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (10.675). Dividend Yield (0.023) settles around the average of (0.025) among similar stocks. P/S Ratio (0.694) is also within normal values, averaging (163.460).
The Tickeron Price Growth Rating for this company is 79 (best 1 - 100 worst), indicating slightly worse than average price growth. SWBI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SWBI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
The average market capitalization across the Aerospace & Defense Industry is 8.7B. The market cap for tickers in the group ranges from 38.5K to 136.7B. RTX holds the highest valuation in this group at 136.7B. The lowest valued company is TURA at 38.5K.
The average weekly price growth across all stocks in the Aerospace & Defense Industry was -1.53%. For the same Industry, the average monthly price growth was -11.74%, and the average quarterly price growth was -12.73%. NSKFF experienced the highest price growth at 33.77%, while BOMBF experienced the biggest fall at -62.38%.
- 3/8/22 8:37 AM: Smith & Wesson Brands (SWBI, $15.66) was a top loser this week, declining -11.17%
The average weekly volume growth across all stocks in the Aerospace & Defense Industry was -45.58%. For the same stocks of the Industry, the average monthly volume growth was 69.23% and the average quarterly volume growth was 54.92%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.96.
29 stocks in the group of tickers confirmed the negative outlook based on the TrendWeek indicator with average odds of 68%.
The most notable companies in this group are Lockheed Martin Corp (NYSE:LMT), Boeing Company (NYSE:BA), Northrop Grumman Corp (NYSE:NOC), Spirit Aerosystems Holdings (NYSE:SPR), Virgin Galactic Holdings (NYSE:SPCE).
The average market capitalization across the group is 12B. The market cap for tickers in the group ranges from 261K to 136.7B. RTX holds the highest valuation in this group at 136.7B. The lowest valued company is GSPT at 261K.
The average weekly price growth across all stocks in the group was -0.54%. For the same group, the average monthly price growth was -11.9%, and the average quarterly price growth was -17.28%. ISSC experienced the highest price growth at 24.35%, while SNAVF experienced the biggest fall at -41.07%.
- 5/14/22 4:23 AM: LIBERTY DEFENSE HOLDINGS (LDDFF, $0.29) was a top loser this week, declining -11.71%. Expect a Downtrend continuation
- 5/14/22 4:23 AM: Mace Security International (MACE, $0.26) was a top loser this week, declining -5.2%. Expect a Downtrend reversal
- 5/12/22 5:38 AM: General Dynamics (GD, $226.94) was a top loser this week, declining -6.58%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was 29.44%. For the same stocks of the group, the average monthly volume growth was 245.73% and the average quarterly volume growth was 369.22%
- 5/11/22 7:39 AM: The volume for ComSovereign Holding stock increased for one day, resulting in a record-breaking daily growth of 231% of the 65-Day Volume Moving Average
- 5/6/22 5:00 AM: The volume for Airbus SE American Depositary Receipts - Unsponsored stock increased for one day, resulting in a record-breaking daily growth of 320% of the 65-Day Volume Moving Average
- 3/31/22 6:34 AM: The volume for ComSovereign Holding stock increased for one day, resulting in a record-breaking daily growth of 219% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows