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.
Momentum Indicator for SWBI turns positive, indicating new upward trend
SWBI saw its Momentum Indicator move above the 0 level on June 02, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned positive. In of the 94 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 50 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 .
SWBI moved above its 50-day moving average on June 02, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SWBI advanced for three days, in of 295 cases, the price rose further within the following month. The odds of a continued upward trend are .
SWBI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for SWBI turned negative on May 31, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SWBI entered a downward trend on May 15, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (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 (1.485) is normal, around the industry mean (25.408). P/E Ratio (9.174) is within average values for comparable stocks, (309.059). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.842). Dividend Yield (0.033) settles around the average of (0.023) among similar stocks. P/S Ratio (1.082) is also within normal values, averaging (170.014).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SWBI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating 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 Profit vs. Risk Rating rating for this company is (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 77, placing this stock better than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a holding company, which engages in the manufacture, design, and provision of firearms
Industry AerospaceDefense
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SWBI and
Correlation & Price change
A.I.dvisor indicates that over the last year, SWBI has been loosely correlated with RGR. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if SWBI jumps, then RGR could also see price increases.
| Ticker / NAME | Correlation To SWBI | 1D Price Change % | ||
|---|---|---|---|---|
| SWBI | 100% | +4.31% | ||
| RGR - SWBI | 62% Loosely correlated | +2.54% | ||
| TXT - SWBI | 40% Loosely correlated | +2.79% | ||
| SPCE - SWBI | 40% Loosely correlated | +1.87% | ||
| TDG - SWBI | 37% Loosely correlated | +2.01% | ||
| ARNC - SWBI | 37% Loosely correlated | N/A | ||
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