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Smith & Wesson shares climb after positive earnings forecast

Smith & Wesson shares climb after positive earnings forecast
Several of Smith & Wesson's new pistols are displayed at the 35th annual SHOT Show in January in Las Vegas. (Julie Jacobson / AP)

Shares of gun maker Smith & Wesson climbed on Wednesday after the company reported on late Tuesday second-quarter earnings that beat expectations.

Despite signs that guns sales were slowing, Chief Executive James Debney said the positive results "reflected the continued successful execution of our growth strategy."

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Wall Street appeared to agree, sending Smith & Wesson shares up as much as 7% to $12.98 on Wednesday morning.

In the second quarter ended Oct. 31, the Springfield, Mass., company reported a profit of $17 million, or 28 cents a share. That was down from $21.2 million, or 31 cents a share, from the same period a year ago. Sales jumped 2% to $139.3 million.

Smith & Wesson forecasted earnings of 28 cents to 30 cents a share for the third quarter, with net sales of $140 million to $145 million. That is above current Wall Street estimates of earnings of 27 cents and sales of $137.4 million.

Background checks on possible gun buyers jumped last year but has since dropped after a gun control bill was defeated in Congress.

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