Tag Archives: Smith Wesson

Business, Finance, Occupation & Industry

Is Smith & Wesson Destined for Greatness?

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By Alex Planes, The Motley Fool

SWHC Total Return Price Chart

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Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Smith & Wesson fit the bill? Let’s take a look at what its recent results tell us about its potential for future gains.

What we’re looking for
The graphs you’re about to see tell Smith & Wesson’s story, and we’ll be grading the quality of that story in several ways:

  • Growth: Are profits, margins, and free cash flow all increasing?
  • Valuation: Is share price growing in line with earnings per share?
  • Opportunities: Is return on equity increasing while debt to equity declines?
  • Dividends: Are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let’s take a look at Smith & Wesson’s key statistics:

Source: SWHC Total Return Price data by YCharts.

Passing Criteria

3-Year* Change 

Grade

Revenue growth > 30%

34.0%

Pass

Improving profit margin

212.3%

Pass

Free cash flow growth > Net income growth

111.7% vs. 77.2%

Pass

Improving EPS

57.1%

Pass

Stock growth (+ 15%) < EPS growth

136.1% vs. 57.1%

Fail

Source: YCharts. * Period begins at end of Q4 2009 (Jan. 28, 2010).

Source: SWHC Return on Equity data by YCharts.

Passing Criteria

3-Year* Change

Grade

Improving return on equity

43.6%

Pass

Declining debt to equity

(45.8%)

Pass

Source: YCharts. * Period begins at end of Q4 2009 (Jan. 28, 2010).

How we got here and where we’re going
Smith & Wesson misses out on a perfect score as a result of its share price growing faster than the underlying earnings per share. However, it’s hard to argue with a single-digit P/E — Smith & Wesson’s is 9.7 as of this writing — and the rest of the company’s results are pretty sterling. The question is: Will everything continue to move in the right direction?

Smith & Wesson’s come a long way from its history as the gun maker behind America’s first revolvers, but in recent years its financial progress has been surpassed by that of fellow gun maker Sturm, Ruger , which has a fast-growing dividend and is also debt-free. Both companies have seen their fortunes soar in the past few years. Whether you wish to attribute it to hoarding over fears of gun control, reactions to a dangerous world, or simply rising interest in recreational shooting, the results are obvious on the bottom line: It may never be a better time to be a gun maker.

However, the best time to be a gun maker may already be past. Despite a recent rejection of assault-rifle bans in Congress, a number of high-ranking politicians have pushed back hard against the NRA and unchecked gun ownership with minimal regulation. The Newtown shooting late last year has been a flashpoint for the gun industry. The post-Newtown plunge in both stocks has been …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Has Smith &amp; Wesson Become the Perfect Stock?

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By Dan Caplinger, The Motley Fool

Every investor would love to stumble upon the perfect stock. But will you ever really find a stock that provides everything you could possibly want?

One thing’s for sure: You’ll never discover truly great investments unless you actively look for them. Let’s discuss the ideal qualities of a perfect stock, then decide if Smith & Wesson fits the bill.

The quest for perfection
Stocks that look great based on one factor may prove horrible elsewhere, making due diligence a crucial part of your investing research. The best stocks excel in many different areas, including these important factors:

  • Growth. Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it’s certainly a better sign than a stagnant top line.
  • Margins. Higher sales mean nothing if a company can’t produce profits from them. Strong margins ensure that company can turn revenue into profit.
  • Balance sheet. At debt-laden companies, banks and bondholders compete with shareholders for management’s attention. Companies with strong balance sheets don’t have to worry about the distraction of debt.
  • Money-making opportunities. Return on equity helps measure how well a company is finding opportunities to turn its resources into profitable business endeavors.
  • Valuation. You can’t afford to pay too much for even the best companies. By using normalized figures, you can see how a stock‘s simple earnings multiple fits into a longer-term context.
  • Dividends. For tangible proof of profits, a check to shareholders every three months can’t be beat. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.

With those factors in mind, let’s take a closer look at Smith & Wesson.

Factor

What We Want to See

Actual

Pass or Fail?

Growth

5-year annual revenue growth > 15%

12.8%

Fail
 

1-year revenue growth > 12%

40.3%

Pass

Margins

Gross margin > 35%

36.4%

Pass
 

Net margin > 15%

12.3%

Fail

Balance sheet

Debt to equity < 50%

30.1%

Pass
 

Current ratio > 1.3

2.86

Pass

Opportunities

Return on equity > 15%

55.2%

Pass

Valuation

Normalized P/E < 20

10.05

Pass

Dividends

Current yield > 2%

0.0%

Fail
 

5-year dividend growth > 10%

0.0%

Fail
       
 

Total score

  

6 out of 10

Source: S&P Capital IQ. Total score = number of passes.

Since we looked at Smith & Wesson last year, the company has doubled its score, as soaring earnings have brought its valuation down, and its margins and returns on equity up. The company has also improved its balance sheet, and the stock has risen more than 40% over the past year.

Throughout the past year, gun demand has been extremely strong, and higher profits have boosted share prices throughout the industry. …read more
Source: FULL ARTICLE at DailyFinance

Articles of Interest

Sheriff Joe Withstands Death Threats

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By Suzanne Eovaldi

Joe Arpaio 5 SC Sheriff Joe withstands death threats

Just how much more can one man take?  America’s real sheriff (the one doing what his constituents have asked him to do), Sheriff Joe Arpaio, has received a threat against his life in the form of a violent online rant sent from Mexico even as he lies hospitalized with a broken left shoulder. The 80-year old Republican peace officer also faces a fall recall after he was elected to an historic sixth term in November! And Arizona is bracing for more crime resulting from the release of 300 to 500 illegal aliens into the state’s southern border area as Eric Holder and his Department of Justice ignore their sworn duty to protect American citizens threatened daily by hordes of invaders. Of course, many believe the number of released illegals will be closer to 2000, with their being back on the street having been conveniently blamed on the sequester.

An individual identified online as an American citizen and Arizona resident made the following violent threat according to Sheriff Joe’s appeal for help:  “He (Sheriff Joe) should see the color of his skin and where he comes from. . .stupid mother******. . .let’s KILL HIM.  I will kill him for FREE.  I am going to AZ to kill that a..hole!”  Now another thug has sent a message attacking the octogenarian lawman who has spent over 50 years serving his fellowman.   “Hopefully, infection will set in,” says the thug.  Just how low will this man’s opponents go in their effort to bring him down? If recall leader William James Fisher is successful in obtaining over 335,000 valid voter signatures by May 30, the Maricopa County Sheriff and his Office will have to face another political battle.

Keep in mind here that Sheriff Joe is the ONLY American law enforcement officer who answered the call of constituents to investigate the legitimacy of Barack Obama’s citizenship and the apparent forgery of the birth certificate released by the White House as “official” in 2011.  More death threats came in after the intensive investigation into birth certificate forgeries by the Cold Case Posse.  “I’m listening to my constituents; they asked me to look at it,” Arpaio says.  At least 150 lawsuits nationwide and 24 legal appeals to the U.S. Supreme Court by ordinary citizens and Americans worried about our country’s national security have been rebuffed by our judiciary, Congress, politicians, and other law enforcement entities nationwide.  Only Sheriff Joe and his Cold Case Posse investigators led by senior analyst Mike Zullo have had the fortitude to press forward against enormous odds in this crisis of Presidential Legitimacy!

The indomitable patriot sent an instant message from his hospital bed saying he is relieved the injury was to his left shoulder, not his right, so he can still operate his “Smith & Wesson and Smith Corona,” referring to his gun and his typewriter!

“I need your help now more than ever,” reads Sheriff Joe’s press release to CiR.  And we need to answer his call yet again.  You can go to www.info@reelectjoearpaio.com or …read more
Source: FULL ARTICLE at Western Journalism

Business, Finance, Occupation & Industry

Market Minute: EU Slaps Microsoft with $733 Million Fine in Browser Case

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By DailyFinance Staff

EU slaps Microsoft with $733 million fine in browser case

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Produced by Drew Trachtenberg

The Dow didn’t just top the five-and-a-half year-old record, it blasted past it, rallying 126 points yesterday. The S&P 500 rose 14 points and the Nasdaq gained 42.

Next up, record-wise, is the S&P, now within about 1.5 percent of its all-time high. The Nasdaq still has a long way to go: it’s 36 percent below its 13 year-old record.

European regulators have fined Microsoft (MSFT) $733 million for failing to give users of its Windows system a choice of Internet browsers. The company had settled an antitrust dispute four years ago by saying it would offer alternatives to its Internet Explorer – but failed to do so for more than a year.

The Associated Press reports that the penalty “is a first for Bussels – no company has ever failed to keep its end of a bargain with EU authorities before.” In all, Microsoft has now paid €2.2 billion ($2.87 billion) to the European Union Commission since the investigation into Windows-realted anticompetitive practices began in 1999. According to top regulator Joaquin Almunia, the size of the most recent fine reflected the extent of Microsoft’s violations of the terms of its earlier agreement, although it was reduced because of the company’s cooperation with the investigation.

Smith & Wesson (SWHC) says earnings shot higher, tripling from a year ago. The gunmaker also raised its forecast for this year, but investors may have been expecting even more following reports of a surge in gun sales as talk of new gun controls heat up. Smith & Wesson shares have climbed 21 percent already this year.

Walt Disney’s (DIS) executives will face some opposition at today’s annual meeting. Several institutional shareholders want to divide up the CEO and chairman positions – both of which are currently held by Bob Iger. There’s also a challenge to how much Iger gets paid. Last year he made $40 million dollars.

Shares of diet company Nutrisystem (NTRI) could lose some weight today. The company posted a quarterly loss and issued a disappointing forecast for this year. Three biotech companies received an ‘overweight’ rating from Piper Jaffray – Vivus (VVUS), Peregrine Pharmaceuticals (PPHM) and Vanda Pharmaceuticals (VNDA).

And the Frito-Lay division of Pepsico (PEP) has lost a court battle of tortilla. It had sued Ralcorp, claiming its chips were too similar to Frito’s bowl-shaped chips. Ralcorp, which makes a lot of store brand foods, is a unit of Conagra.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Smith &amp; Wesson Gun Demand Blows Profits, Sales, and Guidance Away

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By 24/7 Wall St.

146821322

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You have already seen the positive earnings report from Sturm, Ruger & Co. (NYSE: RGR) and positive comments from sporting goods stores about gun and ammo sales. Now we have Smith & Wesson Holding Corp. (NASDAQ: SWHC) shooting the lights out on its earnings report. If you want to know what the specter of gun control does, imagine a 38.8% sales gain year over year! That is what the gun-maker reported in its fiscal third quarter.

Net sales came to $136.2 million and net income from continued operations was $17.5 million or $0.26 in earnings per share. Thomson Reuters had estimates of $0.23 EPS and $133.7 million in sales.

The company also raised its guidance for fiscal 2013 net sales from continuing operations to a range of $575 million to $580 million. Thomson Reuters has estimates of $561.3 million in sales.

Demand is helping margins as well: Gross profit for the third quarter was 36.8% of net sales at $50.1 million compared with gross profit of 30.6% of net sales or $30.0 million a year earlier. At the end of the quarter, S&W had no borrowings under its credit facility and it ended the quarter with a cash balance of $62.0 million. It even spent some $20 million buying back shares of its common stock in the quarter.

We were not expecting that the numbers would have a profound market move in either direction. After all, the demand and shortages are very well known. That being said, Smith & Wesson shares were down about 0.6% at $10.22 today and the stock is down about 1% or so in the after-hours.

Our take is rather simple: imagine how much the gun industry could have made if they were actually able to even be close to meeting the demand out there right now.

Filed under: 24/7 Wall St. Wire, Consumer Goods, Consumer Product, Earnings Tagged: RGR, SWHC

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow to Open Within Reach of Record High

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By Roland Head, The Motley Fool

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LONDON — The Dow Jones Industrial Average closed at 14,127 yesterday, just 37 points short of its highest-ever close of 14,164, which was set in 2007. Stock index futures at 7 a.m. EST indicate that the Dow may open 0.21% higher this morning, leaving it within touching distance of a new closing record. The S&P 500 is also expected to open up by 0.21% today, although it remains well below its all-time high of 1,576.

Today’s main economic report will be February’s ISM nonmanufacturing index at 10 a.m. EST. The index is expected to remain unchanged at 55.2, suggesting that the U.S. service sector is continuing to recover strongly. Other data due for release this morning includes the ICSC-Goldman Sachs same-store sales index at 7:45 a.m. and the Johnson Redbook retail-sales index, due at 8.55am.

In corporate news, Smith & Wesson and VeriFone are both expected to report earnings after the markets close tonight, while companies due to report before markets open include Checkpoint Systems and H&E Equipment Services. Of more interest to many investors will be Apple, which is likely to be actively traded this morning after the tech giant’s shares closed at a 52-week low of $420.05 on Monday. Apple shares were flat in premarket trading, but shares in J. C. Penney fell a further 2% in early trading following news that a major shareholder had sold 10 million shares in the store at a price of $16.40, below yesterday’s closing price of $16.74.

European markets
The main European markets moved firmly higher this morning ahead of this week’s round of central bank monetary-policy committee meetings. Investors are betting that the Bank of England and the European Central Bank will show support for further monetary easing — reducing the risk of a market dip — following the latest eurozone data, which shows that the region is still firmly in recession.

The eurozone composite PMI, which indicates business activity across the 17-country single-currency zone, fell to 47.9 in February, down from 48.6 in January. Readings below 50 indicate contraction, although the result was ahead of forecasts.

At 7:10 a.m. EST, the DAX was up 1.65%, the CAC 40 was up 1.29%, the FTSE MIB was up 1.76%, and the IBEX 35 was up 1.28%. In London, the FTSE 100 was up 0.84%, led by public-sector outsourcing specialist Serco Group, which climbed 8.4% after announcing that its earnings per share rose by 40% during 2012, enabling the company to provide a 20% dividend increase for shareholders. Oil services firm John Wood Group was also a big riser, gaining 7.2% after its 2012 results were well received by investors.

If you’re looking for shares that can outperform the wider market, you need to look beyond the news headlines. This free Motley Fool report, “The Top Growth Share For 2013,” highlights a share that gained 38% in 2012, during which time the wider market rose just 6%. The company …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Smith &amp; Wesson Earnings: An Early Look

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By Dan Caplinger, The Motley Fool

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Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Smith & Wesson is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Smith & Wesson has done extremely well in recent years, as gun sales have stayed at extremely high levels. Yet recent tragic events have raised the potential for tighter legal restrictions on guns. Let’s take an early look at what’s been happening with Smith & Wesson over the past quarter and what we’re likely to see in its quarterly report on Tuesday.

Stats on Smith & Wesson

Analyst EPS Estimate

$0.23

Change From Year-Ago EPS

229%

Revenue Estimate

$133.7 million

Change From Year-Ago Revenue

36%

Earnings Beats in Past 4 Quarters

3

Source: Yahoo! Finance.

Will Smith & Wesson keep growing this quarter?
Analysts have gotten increasingly optimistic in their calls for Smith & Wesson’s earnings over the past few months, raising estimates for the most recent quarter by $0.07 per share and full-year fiscal 2013 and 2014 calls by $0.15 and $0.13 per share respectively. Yet shares are down more than 5% since the beginning of December, although they’ve rebounded sharply from much bigger losses.

Until recently, Smith & Wesson had moved almost straight upward in the face of huge demand. Early in 2012, rival Sturm, Ruger stopped accepting new orders for guns due to overwhelming demand, and Smith & Wesson saw the same trends helping its business.

But the Sandy Hook tragedy sent gun companies down sharply, as public opinion moved sharply toward more gun regulation. Calls from major pension funds and other institutional investors to divest their holdings of gun and ammunition stocks sent Sturm, Ruger; Smith & Wesson; and Winchester-owner Olin plunging. For the most part, those drops were short-lived, although the stocks still haven’t regained all their losses.

You shouldn’t conclude that more gun control would automatically mean worse prospects for Smith & Wesson. With most proposed legislation focusing on assault weapons and high-capacity magazines, the company has plenty of capacity to make compliant guns. And even if new regulations did become law, the Smith & Wesson would inevitably see a surge of demand immediately before they took effect, allowing the gunmaker to get rid of any affected inventory and refocus on other models.

In its quarterly report, look to see if Smith & Wesson can match benign results posted by Sturm, Ruger last week. Given political gridlock in Washington, it’s likely that Smith & Wesson will continue …read more
Source: FULL ARTICLE at DailyFinance

Articles of Interest

Freedom Under Attack, Industry Fires Back!

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By Avg Joe

guns SC Freedom under attack, Industry Fires Back!

Firearms manufacturers and suppliers are pushing back on the infringement of freedom. This is not a political ploy or a gimmick to increase sales; it is to save them from ultimate demise. They understand that their business depends on buyers, specifically private buyers. They are making the ultimate argument for the Second Amendment: if the people cannot possess the same weaponry as the government, tyranny will ensue. Some have vowed to cease sales to government agencies in states like New York, which just passed extreme restrictions on rifles and magazine capacities.

York Arms announced Thursday that it will cancel orders to any government or law enforcement agency inside New York State. York is located in Buxton Maine and is a manufacture of AR-15 rifle components and suppressors. A host of suppliers and manufacturers posted press releases on their web sites and Facebook pages indicating their new policy of not selling to law enforcement in states, cities, or government jurisdictions that have passed weapons or magazine restrictions, such as New York State.

Grass Roots North Carolina has joined in the fray supporting the manufacturers by posting the email addresses of government and law enforcement sales directors for Smith & Wesson, Glock, and Sig Sauer, encouraging its members to email the three handgun suppliers of the NYPD and ask them to implement similar policies.

The Colorado anti-gun Democrat-controlled House held a voice vote approving legislation to limit magazine capacity to 15 rounds. Town Hall reports that if the legislation passes next week, it could cost the state 600 manufacturing jobs. While some Democrats admit that magazine limitations will do little to stop gun violence, they are moving ahead with an official vote to make a statement. Magpul and Alfred Manufacturing have pledged to relocate if the bill becomes law.

Some of these manufacturers may not be far behind III ARMS’ concept of manufacturing communities in states that are more respectful of citizens’ rights. III Arms announced a few months ago that it was looking to build a walled community in Benewah County, Idaho to eventually house its manufacturing.

Suppliers and manufacturers understand where their bread is being buttered. They will be looking to exit states such as Colorado, California, and New York to name a few. Governments in Idaho, Texas, and Alaska should be sharpening their pencils in order to attract these companies and their jobs.

Related posts:

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  2. John Boehner’s Lack Of Courage Might Actually Help Freedom With Stalled “E-Verify” Legislation John Boehner has been criticized for exhibiting less than courageous…

…read more
Source: FULL ARTICLE at Western Journalism

News, Politics, Government

No guns at home, so Japanese shoot 'em up in Guam

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Their well-equipped arsenals offer everything from tiny revolvers (for ladies) to Berettas, Glocks, semi-automatic pistols and M16 military assault rifles. If kids can see over the counter, they are welcome too.

Forget the white sandy beaches, coral reefs and laid-back island culture. For many tourists from Japan, the biggest thrill is the chance to shoot a gun at one of Guam‘s ubiquitous ranges, dozens of which are tucked between upscale shopping centers.

The U.S. territory of Guam — a tropical island often described as a cheaper version of Hawaii — has long been the perfect place to put guns in the hands of tourists, especially from Japan, where gun ownership is tightly restricted and handguns are banned.

Despite a shared sense of shock over the recent rampage by a gunman at America’s Sandy Hook Elementary School, the gun tourism business here is as brisk as ever.

“It was such a feeling of power,” Keigo Takizawa, a 30-year-old Japanese actor, said after blasting holes in a paper target with a shotgun, a .44 magnum and a Smith & Wesson revolver at the Western Frontier Village gun club, a cowboy-themed indoor shooting range and gift shop on Guam‘s main shopping street.

“But,” he said, “I still don’t think anyone should be allowed to have one of their own.”

Many Japanese see America’s gun culture as both frightening and fascinating. Back home, the only people with handguns are in the military, the police or the mob.

Because guns are so hard to find, gun-related crime is extremely rare. They were used in only seven murders in Japan — a nation of about 130 million people — in 2011, the most recent year for official statistics. In the U.S., with 315 million people, there are more than 11,000 gun-related killings annually.

The Japanese are proud of their low crime rate and generally support tough gun-control policies.

But this Pacific island halfway between Tokyo and Honolulu is America. Guam‘s gun ranges are to the Japanese what Amsterdam’s cannabis cafes are to backpackers from the world over.

“I think it’s human nature to be curious about something that is forbidden,” said Tetsuo Yamamoto, a Japanese native who emigrated to …read more
Source: FULL ARTICLE at Fox World News