Another strong quarter for Smith & Wesson

  @jtotoole December 10, 2013: 6:34 PM ET
smith and wesson

An attendee walks through the Smith and Wesson booth during the 2013 NRA Annual Meeting in Houston.

NEW YORK (CNNMoney)

The gun control debate on Capitol Hill has come and gone, but the firearm business is still booming.

Smith & Wesson (SWHC) shares surged 6% in after-hours trading Tuesday following another strong quarterly earnings report from the gun maker, which said its handgun sales had grown 27% versus a year prior.

Gun sales have surged since the reelection of President Obama last year, fueled by concerns about more rigid regulation in the wake of mass shootings in Newtown, Conn., and Aurora, Colo. Smith & Wesson reported record quarterly sales earlier this year, saying it was unable to keep up with demand despite increasing production.

Although the pace of sales has moderated in recent months, gun stocks remain a popular choice among investors. Smith & Wesson shares are up nearly 44% on the year, while fellow gun maker Sturm Ruger (RGR)is up nearly 60%.

Smith & Wesson has been helped on its rise by a $100 million stock buyback completed earlier this year. The company recently authorized an additional buyback of $15 million.

A rifle that shoots like a machine gun

Smith & Wesson's net sales for the three months ended October 31 hit $139 million, good for a $58 million profit.

Lawmakers debated strengthening gun control laws earlier this year, but the Senate ultimately failed to pass legislation that would have expanded background checks and banned some semi-automatic weapons. To top of page



Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,514.37 65.12 0.40%
Nasdaq 4,161.46 39.91 0.97%
S&P 500 1,879.55 7.66 0.41%
Treasuries 2.70 -0.03 -0.95%
Data as of 9:18am ET
Company Price Change % Change
Xerox Corp 11.59 0.12 1.05%
Peabody Energy Corp 17.31 -0.12 -0.69%
General Motors Co 34.23 0.25 0.74%
Fifth Third Bancorp 21.00 0.28 1.35%
Twenty-First Century... 32.80 0.21 0.64%
Data as of Apr 22
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.28%4.26%
15 yr fixed3.30%3.30%
5/1 ARM3.35%3.30%
30 yr refi4.32%4.25%
15 yr refi3.35%3.29%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.