Smith & Wesson Brands reports Q4 adjusted EPS 20c, consensus 23c

Reports Q4 revenue $140.8M, consensus $152.41M. Gross margin was 28.8% compared with 35.5% in the comparable quarter last year. Mark Smith, President and Chief Executive Officer, commented, “Fourth quarter proved more difficult than we anticipated largely due to macro-economic and industry trends. While the combination of lower sales and production volumes, along with mix factors, pressured margins, we were able to partially offset the bottom-line impact through disciplined cost management and by leveraging our flexible manufacturing model. Looking at the overall firearms market, we continue to see consumers generally being cautious due to macro-economic factors pressuring discretionary spending. While new products and lower price point offerings are still performing well, overall conditions suggest headwinds will likely persist in the near term. Despite these challenges, we remain well positioned to succeed in this environment.”