We Just Saw the First Billion-Dollar Year for a Gun Maker

[thackney]

We Just Saw the First Billion-Dollar Year for a Gun Maker
https://thereload.com/we-just-saw-the-first-billion-dollar-year-for-a-gun-maker/
June 29, 2021

One of the nation’s largest gun companies raked in record sales as Americans flooded gun stores last year.

Smith & Wesson reported its best sales year ever in 2020, topping $1.1 billion in net sales for the first time ever. That’s up more than 100 percent from 2019.

“Our manufacturing logistics teams produced and shipped nearly 2.5 million units last fiscal year, representing a 70 percent increase year on year,” CEO Mark Smith said during the company’s June 17 earnings call. “While during the same timeframe, the U.S. firearms market as measured by NICS grew by 42 percent.”

The unprecedented sales enabled the newly spun-off company to go debt-free and pay out a dividend.

“During fiscal 2021, we invested in our business and our people, we repaid all of our bank debt, we repurchased over 10% of our outstanding common stock, and we began paying our stockholders a quarterly dividend for the first time in company history,” said Deana McPherson, the company’s CFO, in a statement. “Our Board has authorized a new $50 million share repurchase program as well as a 60% increase in our quarterly dividend to 8 cents per share.”...

[catfish1957]

SWBI is very interesting investment play right now, and good bet....  IF you think the headwinds of anti-gun sentiment and legislation are not in play.

$1B in annual sales on a $1.7B market cap company is quite remarkable.  Of course, almost everyone believes the turmoil last year and rioting make these results short term, unsustainable, and reductions in sales numbers almost a certainty.  Once everyone is has their 2 and or 3rd pistol, where can you go from there?

Still 90% of economic punditry is saying this equity is highly undervalued, and in one of my reports has a consensus number of a 11.3 percent increase in return.

In any case, thanks for the heads up @thackney, I think I am going to open a position at the next dip.

[Fishrrman]

S&W is up in Springfield, Mass.

But... Massachusetts residents, and down here to the south in Connecticut, cannot buy a number of their products, such as the MP-15 and MP-15/22.

Yup, can't even buy a Smith & Wesson .22LR rifle in Connecticut, because it looks like "an assault weapon"...

[thackney]

Once everyone is has their 2 and or 3rd pistol, where can you go from there?

You move on to your 2 or 3rd gun case.  I am up to six now.

[catfish1957]

S&W is up in Springfield, Mass.

But... Massachusetts residents, and down here to the south in Connecticut, cannot buy a number of their products, such as the MP-15 and MP-15/22.

Yup, can't even buy a Smith & Wesson .22LR rifle in Connecticut, because it looks like "an assault weapon"...

   Thing is, many of us Briefers are the exception instead of the rule.

[mountaineer]

https://twitter.com/CNBCTheExchange/status/1409960201818722304

After watching this video clip, I did a little research. All of these ammo and gun stocks: OLN, VSTO, POWW, SWBI and RGR are recommended "buy." They're also pretty close to the highest price per share they've been in the past year.

[IsailedawayfromFR]

I sometimes wonder if Hunter Biden secretly sits on S&W board.

The influence he peddles through his pop creates a lot of money in many different ways, and who knows, maybe Joe's threats to confiscate guns increases gun sales so much that it enriches him as much as pawning off his paintings......

[Elderberry]

Once everyone is has their 2 and or 3rd pistol, where can you go from there?

2 or 3 just gets you started. There a whole variety of calibers. There are semi autos, revolvers, derringers, and single shots. There are single actions, single/double actions, and double action onlys. There a hammer fired and striker fired pistols. There are snub nose, target and hunting pistols. There are AR and AK pistols. And many more. And I almost forgot the black powder handguns.

[catfish1957]

2 or 3 just gets you started. There a whole variety of calibers. There are semi autos, revolvers, derringers, and single shots. There are single actions, single/double actions, and double action onlys. There a hammer fired and striker fired pistols. There are snub nose, target and hunting pistols. There are AR and AK pistols. And many more. And I almost forgot the black powder handguns.

  See Reply No. 4