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Smith & Wesson (SWBI) to Post Q4 Earnings: What's in Store?

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Smith & Wesson Brands, Inc. (SWBI - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Jun 17. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 36.6%.

Q4 Estimates

The Zacks Consensus Estimate for the fourth-quarter earnings is pegged at $1.07. In the year-ago quarter, the company had reported adjusted earnings of 57 cents per share. The consensus mark for revenues stands at $273.5 million, suggesting growth of 17.1% from the prior-year quarter.

Factors to Note

The company’s performance in the quarter is likely to have benefited from sporting goods shipment and increase in handguns revenues. Robust demand for both long guns and handguns is likely to have aided the performance. In third-quarter fiscal 2021, shipments for long guns and hand guns increased 102% and 61%, respectively. Moreover, increased unit shipments and elimination of promotional activity are likely to have contributed to the margin. The company’s manufacturing and logistics teams, which produced as well as shipped more than 623,000 in third-quarter fiscal 2021, were up 250,000 units from the prior-year period. This trend, is likely to have continued in the quarter under review owing to high demand.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Smith & Wesson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Smith & Wesson has an Earnings ESP of 0.00% and a Zacks Rank #1.

Stocks With Favorable Combination

Here are some stocks that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.

American Outdoor Brands, Inc. (AOUT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +6.67%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Callaway Golf Company (ELY - Free Report) has a Zacks Rank #2 and an Earnings ESP of +100.00%.

Vista Outdoor Inc. (VSTO - Free Report) has a Zacks Rank #1 and an Earnings ESP of +0.56%.

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