American Outdoor Brands Corporation announced that its firearm business, Smith & Wesson Corp., has entered into an agreement to acquire Gemini Technologies, Incorporated ("Gemtech"), a provider of high quality suppressors and accessories for consumer, law enforcement and military markets.
The company was silent about the value and expects to complete the acquisition by summer. It also intends to utilize its existing cash in hand to fund the buyout.
Benefits from the Acquisition
This acquisition will enable Smith & Wesson to reap the benefits of Gemtech’s ability to produce the finest rifle and pistol suppressors. Moreover, the strong product improvement capabilities of Gemtech will be equally profitable.
Smith & Wesson delivers innovative pistols, revolvers, rifles and accessories to its customers and this buyout will help the company enter the suppressor category. It will also help the company to expand its product offering and gel well with its long-term growth strategy.
Long-Term Plans
Smith & Wesson Corp. changed its name to American Outdoor Brands Corporation, effective Jan 1, 2017. The company is expanding its operation through strategic acquisitions and new product offerings. In its firearm business, the company aims to add new M&P pistols in fiscal 2018 and beyond.
We believe the policy of the company to focus on organic growth and make strategic acquisitions, like the UST Brands buyout in Nov, 2016, will help in strengthening the operation of the company.
Price Movement
American Outdoor Brands Corporation returned 3.3% in the last three months compared with the Zacks categorized Aerospace- Defense Equipment industry’s gain of 8.4%.
The company has provided an average positive earnings surprise of 28.21% in the last four quarters. We expect its expanded product offering to help it hold its strong position.
Zacks Rank & Stocks to Consider
American Outdoor Brands Corporation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Raytheon Company , Heico Corporation (HEI - Free Report) and Curtiss-Wright Corporation (CW - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Raytheon delivered average positive earnings surprise of 5.16% in the last four quarters. Its 2017 earnings estimates moved up 1.36% to $7.48 over the last 90 days.
Heico Corporation delivered average positive earnings surprise of 5.76% in the last four quarters. Its fiscal 2017 earnings estimates moved up 1.47% to $2.07 over the last 90 days.
Curtiss-Wright Corporation delivered average positive earnings surprise of 5.11% in the last four quarters. Its 2017 earnings estimates moved up 1.36% to $4.48 over the last 90 days.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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American Outdoor Brands Corporation announced that its firearm business, Smith & Wesson Corp., has entered into an agreement to acquire Gemini Technologies, Incorporated ("Gemtech"), a provider of high quality suppressors and accessories for consumer, law enforcement and military markets.
The company was silent about the value and expects to complete the acquisition by summer. It also intends to utilize its existing cash in hand to fund the buyout.
Benefits from the Acquisition
This acquisition will enable Smith & Wesson to reap the benefits of Gemtech’s ability to produce the finest rifle and pistol suppressors. Moreover, the strong product improvement capabilities of Gemtech will be equally profitable.
Smith & Wesson delivers innovative pistols, revolvers, rifles and accessories to its customers and this buyout will help the company enter the suppressor category. It will also help the company to expand its product offering and gel well with its long-term growth strategy.
Long-Term Plans
Smith & Wesson Corp. changed its name to American Outdoor Brands Corporation, effective Jan 1, 2017. The company is expanding its operation through strategic acquisitions and new product offerings. In its firearm business, the company aims to add new M&P pistols in fiscal 2018 and beyond.
We believe the policy of the company to focus on organic growth and make strategic acquisitions, like the UST Brands buyout in Nov, 2016, will help in strengthening the operation of the company.
Price Movement
American Outdoor Brands Corporation returned 3.3% in the last three months compared with the Zacks categorized Aerospace- Defense Equipment industry’s gain of 8.4%.
The company has provided an average positive earnings surprise of 28.21% in the last four quarters. We expect its expanded product offering to help it hold its strong position.
Zacks Rank & Stocks to Consider
American Outdoor Brands Corporation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Raytheon Company , Heico Corporation (HEI - Free Report) and Curtiss-Wright Corporation (CW - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Raytheon delivered average positive earnings surprise of 5.16% in the last four quarters. Its 2017 earnings estimates moved up 1.36% to $7.48 over the last 90 days.
Heico Corporation delivered average positive earnings surprise of 5.76% in the last four quarters. Its fiscal 2017 earnings estimates moved up 1.47% to $2.07 over the last 90 days.
Curtiss-Wright Corporation delivered average positive earnings surprise of 5.11% in the last four quarters. Its 2017 earnings estimates moved up 1.36% to $4.48 over the last 90 days.
Today’s Stocks from Zacks’ Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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