Smith & Wesson Brands Inc (NASDAQ: SWBI) is trading significantly lower Friday morning after the company reported worse-than-expected financial results.
Smith & Wesson said fiscal third-quarter revenue declined 31% year-over-year to $177.7 million, which came in below the $198.29 million estimate. The company reported quarterly adjusted earnings of 69 cents per share, which came in below the estimate of 86 cents per share.
"Although the firearms market remains elevated and healthy with new entrants, it has cooled significantly from the height of the pandemic surge and seems to now be following pre-pandemic historical demand patterns," said Mark Smith, president and CEO of Smith & Wesson.
"This macro demand pattern is very familiar to us, and is exactly what our business model is designed to accommodate."
Smith also noted that the company is well positioned to return value to shareholders via dividends and buybacks.
See Also: 24 Stocks Moving in Friday's Pre-Market Session
SWBI Price Action: Smith & Wesson has traded as high as $39.60 over a 52-week period. It's making new lows Friday.
The stock was down 19.6% at $14.39 at time of publication.
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