Smith & Wesson earnings more than triple as demand for guns soars

Smith & Wesson pistols are displayed at a gun show in Las Vegas in January. The company reported that its earnings more than tripled in its fiscal third quarter. (Julie Jacobson / Associated Press / January 15, 2013)

By Shan Li

March 6, 2013, 8:29 a.m.

Gun maker Smith & Wesson Holdings Corp. said its fiscal third-quarter earnings more than tripled from the previous year as Americans hurried to purchase firearms amid wrangling by lawmakers around the country over stricter weapons laws.

Covering the three months ended Jan. 31, the results span a period in which a mass shooting at a Connecticut elementary school that left 20 children dead elevated the national conversation on firearm restrictions.

In response, some gun advocates have rushed to buy firearms in anticipation of tighter laws controlling the sale of guns and ammunition. Many firearms makers, including Smith & Wesson, have reported a surge in sales in the last few months.

The Springfield, Mass., company reported a profit of $14.6 million, or 22 cents a share, a 228% increase from the $4.4 million, or 7 cents a share, it earned in the same period a year earlier. Sales rose 38.8% to $136.2 million, from the earlier period.

"Performance gains were driven by continued robust consumer demand for firearms," Chief Executive James Debney said in a statement.

Smith & Wesson also raised its earnings guidance for its 2013 fiscal year. It forecasted total sales between $575.0 million and $580.0 million, a significant jump from the year before.

Despite the big gains, investor worries that the company’s future may be hampered by tighter gun-control laws sent shares down 57 cents, or 5.6%, to $9.65 in midday trading.

ALSO:

Gun company's shares are in line of fire

Wal-Mart limits ammunition sales as demand soars

Gun sales surge; 3½ years of ammunition magazines sold in 72 hours

Follow Shan Li on Twitter @ShanLi

Comments (63)

Add / View comments | Discussion FAQ

John2011 at 10:46 AM March 12, 2013 The National Rifle Association is a powerful lobby that pretends to represent gun owners. But in reality, it represents the deadly interests of arms dealers and gun manufacturers. And it has been astonishingly successful at blocking regulations that would keep our children safe from gun violence.Most NRA members are unaware of the organization's extreme stances that have blocked the passage of any major piece of gun legislation in nearly two decades.Through lobbying, campaign spending, and inciting a paranoia about government among a radical fringe in their membership, the NRA has helped defeat common sense gun measures that polls show an overwhelming majority of gun owners support.

John2011 at 10:44 AM March 12, 2013 There have been numerous threats made against public officials by 2nd Amendment supporters. Verbal and written threats were made to elected representatives Rhonda Fields (D) Aurora, Joe Salazar (D) both of Colorado and Leland Yee (D) of California. Many more threats have been made by gun thugs in just the last few days. On the other hand, gun control advocates are not known to make violent threats against law makers.Threats were made by so-called gun rights advocates because of their rage against any legislative effort to address the gun violence issue. It is becoming all too common for gun rights thugs to make death threats against those who support gun control. Reading on-line posts one can easily see the extremism and violent tendencies put on display by the gun crowd. Ongoing threats against our democratically elected leaders is one more reason to support Gun Control.

John2011 at 10:43 AM March 12, 2013 In Minnesota, a lawmaker who sponsored an assault weapons ban said she's received threatening emails and calls. During hearings on gun bills this year, armed Minnesota State Patrol officers have been present, which is a rarity. Wyoming legislative leaders said some of their members had been receiving abusive and overly threatening communication regarding proposed gun control legislation."There is this extremist element where it does feel dangerous to stand up," said Colorado state Sen. Jessie Ulibarri, a Democrat who will be voting on the bills Monday. Ulibarri received a letter from someone who said they hope the senator's daughter is raped. Ulibarri has a 2-year-old girl.

Comments are filtered for language and registration is required. The Times makes no guarantee of comments' factual accuracy. Readers may report inappropriate comments by clicking the Report Abuse link next to a comment. Here are the full legal terms you agree to by using this comment form.