Smith & Wesson Brands (NASDAQ:SWBI) Releases Earnings Results, Beats Expectations By $0.03 EPS

07 Mar 2026, 15:56 by Danessa Lincoln · The Markets Daily

Smith & Wesson Brands (NASDAQ:SWBI – Get Free Report) posted its earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.03, FiscalAI reports. Smith & Wesson Brands had a net margin of 2.24% and a return on equity of 3.06%. The firm had revenue of $135.71 million during the quarter, compared to the consensus estimate of $125.59 million. During the same quarter in the prior year, the company earned $0.02 EPS. The company’s revenue was up 17.1% on a year-over-year basis.

Here are the key takeaways from Smith & Wesson Brands’ conference call:

Strong Q3 financial results — Net sales rose ~17% to $135.7M, adjusted EBITDA was $16.8M (up ~21%), adjusted EPS was $0.08, and operating cash flow improved by roughly $30M year-over-year.
Handgun momentum and market-share gains — Handgun unit shipments into sporting channels were up 28% while adjusted NICS fell 2.2%, new products made up 44% of handgun shipments, and ASPs rose ~5.2% to $419 (supported by a modest ~2–3% price increase).
Long-gun weakness — Long-gun shipments into the sporting channel fell ~25% and ASPs declined ~11% year-over-year, largely versus a prior-year period that included channel fill of higher-priced Model 1854 introductions.
Balance-sheet improvement and capital deployment — Debt fell to $75M at quarter-end (and to $55M after a subsequent $20M repayment), inventory declined to $175M, cash from operations was strong, and the board authorized a $0.13 quarterly dividend.
Confident outlook for Q4 — Management expects Q4 sales to grow 10–12% year-over-year, anticipates several percentage points of gross-margin improvement, ongoing healthy cash generation, and modestly higher operating expenses tied to R&D and compensation.

Smith & Wesson Brands Stock Up 18.7%

NASDAQ SWBI traded up $2.20 on Friday, reaching $13.99. The company had a trading volume of 3,434,825 shares, compared to its average volume of 358,363. The firm has a market capitalization of $622.42 million, a PE ratio of 60.83 and a beta of 1.04. Smith & Wesson Brands has a 1 year low of $7.73 and a 1 year high of $13.99. The firm has a 50-day moving average of $11.21 and a 200-day moving average of $10.01. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.98 and a quick ratio of 1.58.

Key Smith & Wesson Brands News

Here are the key news stories impacting Smith & Wesson Brands this week:

Positive Sentiment: Q3 results beat estimates — Smith & Wesson reported EPS of $0.08 vs. consensus $0.05 and revenue of $135.7M vs. $125.6M, with net sales up 17.1% year-over-year; this topline and EPS beat is the primary catalyst for the stock move. Smith & Wesson Q3 Results
Positive Sentiment: Raise to fiscal Q4 revenue guidance — management updated Q4 revenue guidance to roughly $154.9M–$157.7M versus a consensus of ~$142.2M, signaling better-than-expected near-term demand. Earnings Transcript / Guidance
Positive Sentiment: Analyst upgrade — Lake Street Capital raised its price target from $11 to $14 and set a Buy rating, providing incremental buy-side validation. Benzinga
Neutral Sentiment: Full earnings call / transcripts are available for details on product demand, margin outlook and working-capital commentary — useful for drilling into sustainability of the sales beat. Seeking Alpha Call Transcript
Neutral Sentiment: Press and coverage pieces explain the share move and investor reaction; read for additional color on market response. MSN Coverage
Negative Sentiment: Valuation and margin context — the stock trades at a high P/E (~73.6) while reported net margin is modest (~1.9%); investors should weigh elevated valuation vs. growth and guidance. No link

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SWBI. Millennium Management LLC purchased a new position in shares of Smith & Wesson Brands in the third quarter valued at $7,558,000. Two Sigma Investments LP increased its stake in Smith & Wesson Brands by 166.1% during the 3rd quarter. Two Sigma Investments LP now owns 753,964 shares of the company’s stock worth $7,411,000 after buying an additional 470,602 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Smith & Wesson Brands by 25.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,311,503 shares of the company’s stock worth $12,945,000 after buying an additional 265,370 shares during the period. Goldman Sachs Group Inc. lifted its holdings in Smith & Wesson Brands by 41.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company’s stock worth $6,642,000 after buying an additional 208,739 shares in the last quarter. Finally, Trexquant Investment LP boosted its position in Smith & Wesson Brands by 159.3% in the 4th quarter. Trexquant Investment LP now owns 318,026 shares of the company’s stock valued at $3,139,000 after buying an additional 195,390 shares during the last quarter. 59.33% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on SWBI shares. Wall Street Zen downgraded shares of Smith & Wesson Brands from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Weiss Ratings reissued a “hold (c)” rating on shares of Smith & Wesson Brands in a research note on Monday, December 29th. Finally, Lake Street Capital lifted their target price on shares of Smith & Wesson Brands from $11.00 to $14.00 and gave the company a “buy” rating in a report on Friday. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Smith & Wesson Brands has a consensus rating of “Hold” and an average price target of $14.00.

Check Out Our Latest Research Report on Smith & Wesson Brands

Smith & Wesson Brands Company Profile

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Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.