SWBI Stock: Why Smith & Wesson Shares Are Getting Gunned Down Today

Smith & Wesson (NASDAQ:SWBI) stock is feeling the heat on Friday following the release of its fiscal second-quarter 2022 earnings report.

Image of a pistol and several bullets laying on a dark grey surface representing SWBI stock.

Source: Supakorn Pe / Shutterstock.com

Starting off the bad news for Q2 is the firearm company’s adjusted per-share earnings of $1.13. That’s below the $1.29 per share that Wall Street was expecting during the quarter. However, it’s still an increase over the 93 cents per share reported during the same period of the year prior.

Moving on to revenue, it didn’t offer much help to SWBI stock, either. The company brought in $230.5 million during the quarter, which misses analysts’ estimate of $277.9 million for Q2. In addition to that, revenue is down 7.3% from the same time last year.

Mark Smith, president and CEO of Smith & Wesson, said the following in the earnings report hammering SWBI stock.

“During our second quarter, as demand levels eased from historical highs experienced during the height of the pandemic, the results of those efforts and our flexible model were evident. Despite a year over year revenue decline, our operations team actually delivered higher gross profit, more than offsetting the decrease in the top line.”

To add insult to injury, SWBI stock also got hit with a downgrade today. Cowen analyst Cai Von Rumohr dropped the stock from outperform to market perform while also cutting the price target for $38 per share to $22 per share.

With the company’s earnings report comes heavy trading of SWBI stock. As of this writing, more than 4 million shares of the stock have been traded. To put that in perspective, the company’s daily average trading volume is about 815,000 shares.

SWBI stock is down 27.8% as of Friday morning. That erases any gains seen throughout the year and has the stock down 9% year-to-date.

Investors still hungry for more stock market news today will want to keep reading!

We’ve got all the latest stock news that traders need to know about for Friday. A few examples include what’s happening with shares of Celyad Oncology (NASDAQ:CYAD), Zillow Group (NASDAQ:Z), and TOMI Environmental (NASDAQ:TOMZ) today. You can get all of those details by checking out the links below!

More Stock Market News for Friday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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