What Happened?

[Exaviator]

In spite of record sales and net earnings up by 19.5% and nearly 170% two year compounded growth, the S & W share price has taken a serious dip in price?

 

[ralph7]

Great question!

 

[doublesharp]

Guns aren't butter and you don't use them up. We hard core collectors/enthusiasts will never have enough but the average Joe/Jane gets 1, 2, 3 or 4 and they are done buying.

 

[glenwolde]

The share price reflects expectation for the future, not the past. I think the share price got a bit ahead of itself.

"02:07 PM EDT, 09/02/2021 (MT Newswires) -- Smith & Wesson Brands ( SWBI ) shares will be under the gun for the rest of 2021 with investors counting on a slowdown in sales for a firearms maker viewed as a "major pandemic beneficiary," Wedbush said Thursday in a research note.

"We are now assuming that the company produces at capacity during 2Q, followed by a steady deceleration in 3Q and 4Q (a quarter earlier than our previous estimate) as shipments return to tracking retail, which we also assume will slow considerably over the next 9-12 months," Wedbush analysts wrote."

 

[Tom Beavert]

Buy-Buy-Buy!

TB

 

[doublesharp]

still too early... a falling knife will cut you

mid aughts/early teens swhc was like a money tree for several of us on this forum. I first bought at about $3 and it ran to low 20s. take profit, buy the dip, take profit, buy the dip...

 

[bigwheelzip]

While earnings were good, they fell a bit shy of consensus estimates, and there was a lack of management guidance on earnings going forward.