Smith & Wesson Brands, Inc. (SWBI), a company involved in the firearms business across the globe, has plunged 18.50% in the premarket trading session. As a result, the stock was trading at $14.58 when last checked. During Thursday’s regular trading session, the stock slid by 1.05% to close the day at $17.89. The decline in aftermarket could be attributed to the announcement of financial results as the executives admitted a decline in gun sales, causing the investors to sell the stock in bulk.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
Q3 2021 Results
On Thursday, SWBI announced the results for Q3 2021. The quarter ended on 31st January 2022. The net sales during the period were $177.7 million, a decrease of 31% compared to Q3 2020. The gross margin was 39.6% during the quarter against 42.6% during Q3 2021. The non-GAAP net income during Q2 2022 was $32.9 million (or $0.69 per diluted share) compared to $62.4 million (or $1.12 per diluted share) for the fourth quarter of fiscal 2020.
Liquidity Position
Alongside the financial results, SWBI provided updates regarding the liquidity position it had on 31st January 2022. The company had cash and cash equivalents of $107.2 million on the said date. The total assets in possession of the company were $469.3 million, while the total liabilities were estimated to be $142.9 million. The stockholder’s equity on the said date was $326.3 million.
Comments from CEO of SWBI
Mark Smith, President and Chief Executive Officer of SWBI, stated that the company’s ability to increase the production of firearms to meet the surge in the demand has fomented the growth of the company. The long-term commitment of the company has always been to continue returning the value to shareholders through strategies like share repurchases and regular dividends.
Future Outlook for SWBI
Looking ahead, the analysts are of the view that SWBI stock holds several negative signals at this point, and hence, is expected to decline in the next couple of weeks. So, investors should make a careful decision regarding their investments in SWBI stock.
