Profit takes a hit despite rising sales

  • Smith & Wesson Brands shares fall 7% after profit decline
  • Quarterly profit drops to $2.5 million from $9.6 million a year earlier
  • Adjusted per-share earnings came to 14 cents, missing analysts’ expectations
  • Revenue rises 3.2% to $125 million, beating analysts’ expectations
  • Gross margins still under pressure due to fixed-cost absorption, inflation, and inventory adjustments

Shares of Smith & Wesson Brands fell 7% in post-market trading after the company’s profit declined, despite an increase in sales. The quarterly profit dropped to $2.5 million from $9.6 million in the same period last year. Adjusted per-share earnings came to 14 cents, missing analysts’ expectations. However, revenue rose 3.2% to $125 million, surpassing analysts’ expectations. The company’s gross margins continue to be under pressure due to fixed-cost absorption, inflation, and inventory adjustments.

Public Companies: Smith & Wesson Brands (N/A)
Private Companies:
Key People: Deana McPherson (Finance Chief)

Factuality Level: 7
Justification: The article provides specific information about Smith & Wesson Brands’ stock performance, profit, and revenue, which can be verified. However, it does not provide any sources for the information or any analysis of the reasons behind the company’s profit decline. The article also does not provide any context or comparison to the industry or competitors, which could affect the overall factuality level.

Noise Level: 3
Justification: The article provides relevant information about Smith & Wesson Brands’ financial performance, including the decline in profit and the reasons behind it. It also includes the expectations of analysts and the company’s outlook for the future. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on the financial numbers without exploring the broader implications or consequences of the company’s performance.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Smith & Wesson Brands

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Smith & Wesson Brands, a firearms maker. It discusses the company’s profit decline despite rising sales, which can impact the company’s stock and potentially the firearms industry as a whole.

Reported publicly: www.marketwatch.com