Smith & Wesson booked record sales as gun debate raged
POSTED: Sunday, June 16, 2013 - 11:00pm
UPDATED: Sunday, June 16, 2013 - 11:04pm
CNN — The past 12 months have been bad for gun violence, but good for Smith & Wesson.
The gun maker reported preliminary results Thursday showing that sales for the fiscal year ended April 30 hit a record $588 million, a 43 percent increase versus the year prior. Earnings were a record $1.22 a share, up from 40 cents a share in the prior fiscal year.
Both figures came in slightly ahead of analyst expectations. Smith & Wesson shares rose 5.3 percent in after-hours trading.
The gun industry saw a spike in demand from consumers fearing that the national debate over gun control would yield new regulations limiting their ability to buy certain firearms.
The trend began with President Obama's reelection and accelerated in the months after a gunman killed 20 children and six adults in December in Newtown, Conn. It may now be on the wane after U.S. Senate failed to pass gun-control legislation in April that would have expanded background checks and banned some semi-automatic weapons.
Smith & Wesson's preliminary figures showed sales in its most recent quarter rose 38 percent versus a year prior to $179 million, also a record. The company will report its full fiscal year and fourth-quarter results on June 25.