Shares in Smith & Wesson Holding Corp (NASDAQ:SWHC) have fallen by more than 15 percent in the last month as the gun boom caused by the political atmosphere in the United States fades. The company reported its earnings for the three months ending June 30 yesterday afternoon after the market closed.
On today’s market, shares in the company fell by more than 8 percent in response to the company’s earnings report. Smith & Wesson Holding Corp (NASDAQ:SWHC) showed earnings of 41 cents per share on revenue of $171 million for the period. Though both figures were up an impressive amount since the same time last year, the market was more concerned with the poor outlook for the current quarter.
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Smith & Wesson forecast
Smith & Wesson Holding Corp (NASDAQ:SWHC) said that it expects to earn between $134 and $140 million in the current quarter. Analysts following the company were looking for it to bring in around $143 million in revenue in the three months ending September 30. Earnings for the quarter were expected to come in at around 29 cents per share by analysts, but the company says that the market should expect 20-22 cents.
The poor forecast from Smith & Wesson Holding Corp (NASDAQ:SWHC) was blamed by the company on fewer days of manufacturing and higher operational costs in the current quarter. However, that hasn’t stopped analysts wondering whether or not the gun boom of the Obama administration is over, bringing darker days for the company.
Lull in ‘gun crazy’ attitude
The stock chart for Smith & Wesson Holding Corp (NASDAQ:SWHC) says it all. The shares jumped in value just after President Obama took office in 2009, and spiked again when he was sworn in for his second term in January 2013. This year, several other events have caused demand for firearms to increase on fears that gun control could be around the corner.
Smith & Wesson Holding Corp (NASDAQ:SWHC) has been benefiting massively from fears that Congress will seek to tighten firearm laws, or try to ban certain types of firearms altogether. There has been no successful moves to widen the purview of gun control legislation, and there is less and less media coverage as other crises take hold.
Smith & Wesson Holding Corp (NASDAQ:SWHC) has lived through the boom times, but they’re not necessarily over yet. President Obama and Congress may try to introduce wide gun control measures at some future date, and the company will be rolling once more.