From Fortune Magazine.
Smith & Wesson, one of the three biggest U.S. gunmakers (along with Sturm, Ruger & Co. and privately held Freedom Group, which owns Remington), beat analyst expectations this week with its third-quarter earnings. Quarterly revenue of $130.6 million was down nearly 11% from the third quarter of last year, but that still topped predictions. Across the board, indicators that were down were not down by as much as expected, and the market responded: Smith & Wesson stock shot up nearly 10% on Tuesday after the earnings announcement. The stock is up nearly 5% in the last year, and 45% in the past two years. It was, in all, a very good earnings report for the gunmaker.
There is another factor helping Smith & Wesson (and its biggest competitor, Ruger, whose shares are up 5% in the past week after its own sunny earnings report): Interest in shooting for sport — that can mean target-shooting or hunting — has risen steadily recently. And the main group fueling this growth? Women.
According to the National Sporting Goods Association, from 2001 to 2013 there was a 60% rise in women who participate in target shooting. On the hunting side, there was 85% growth. Sales have risen along with the rise in the activity, and the firearms industry overall has enjoyed 8% CAGR (compound annual growth rate) over the last 30 years.
Smith & Wesson, one of the three biggest U.S. gunmakers (along with Sturm, Ruger & Co. and privately held Freedom Group, which owns Remington), beat analyst expectations this week with its third-quarter earnings. Quarterly revenue of $130.6 million was down nearly 11% from the third quarter of last year, but that still topped predictions. Across the board, indicators that were down were not down by as much as expected, and the market responded: Smith & Wesson stock shot up nearly 10% on Tuesday after the earnings announcement. The stock is up nearly 5% in the last year, and 45% in the past two years. It was, in all, a very good earnings report for the gunmaker.
There is another factor helping Smith & Wesson (and its biggest competitor, Ruger, whose shares are up 5% in the past week after its own sunny earnings report): Interest in shooting for sport — that can mean target-shooting or hunting — has risen steadily recently. And the main group fueling this growth? Women.
According to the National Sporting Goods Association, from 2001 to 2013 there was a 60% rise in women who participate in target shooting. On the hunting side, there was 85% growth. Sales have risen along with the rise in the activity, and the firearms industry overall has enjoyed 8% CAGR (compound annual growth rate) over the last 30 years.
