Smith & Wesson shares fall as gun 'frenzy' wanes [View all]

[Robb]

Source: CNN

Smith & Wesson shares fell on Friday, a day after the gunmaker reported strong sales and earnings but a disappointing outlook, as the nationwide fever for firearms begins to wane.

Smith & Wesson Holding Corp. (SWHC) dropped 8%, even though the company reported on Thursday that its latest quarterly sales jumped 25% to $171 million. The Springfield, Mass., gunmaker also reported that earnings for the quarter surged to 41 cents per share, compared to 27 cents a year earlier.



Investors were disappointed by the company's "cloudier" than expected forecast for the current quarter, which said sales would be $135 million to $140 million and earnings 20 cents to 22 cents per share.

"Longer term, we think things should be just fine for the industry overall, but certainly the sales frenzy seen earlier this year is unsustainable," said Dionisio.

Read more: http://money.cnn.com/2013/09/06/investing/smith-wesson-gun/