Back to top

Image: Bigstock

Bartosiak: Trading Smith & Wesson's (SWHC) Earnings with Options

Read MoreHide Full Article

On Thursday, December 1st, Smith & Wesson will release its second quarter earnings results after the bell. The company is a Zacks Rank 4 (Sell), and have a Value, Growth, and Momentum score of A.

Dave will look at Smith & Wesson’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Smith & Wesson ahead of earnings.

Smith & Wesson in Focus

Smith & Wesson Holding Corporation is one of the world's leading producers of quality handguns, law enforcement products and firearm safety and security products. Law enforcement personnel, military personnel, target shooters, hunters, collectors and firearms enthusiasts throughout the world have used the company's products with confidence for 150 years. Smith & Wesson Corp. also manufactures and markets Smith & Wesson branded handcuffs and other products utilizing its metal working expertise and providing products and services to many external customers.

Smith & Wesson is expected to report earnings at $0.55 per share according to the Zacks Consensus Estimate. Last quarter they beat earnings expectations by 16.98 % at $0.62 per share, beating estimates by $0.09 a share. They have an average earnings surprise of  27.03%.

SMITH & WESSON Price, Consensus and EPS Surprise

SMITH & WESSON Price, Consensus and EPS Surprise | SMITH & WESSON Quote

Bottom Line

How should investors play Smith & Wesson ahead of their earnings report? For insights on the best options trades, then tune in at 1:00pm CST this afternoon to see David’s thoughts.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +26% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 11X worse than the market. See these critical buys and sells free >>