For the three months ending April 30, the maker of Smith & Wesson firearms projected late Thursday income of $0.11 to $0.15 per diluted share on net sales of $162 million to $172 million. The average estimate of analysts was for earnings per share of $0.20 on net sales of $170.51 million.
Shares of the company fell 5% to $10.80 in Friday's premarket Nasdaq trading.
READ: American Outdoor Brands pops after Smith & Wesson gun maker shoots past Street's fiscal 2Q estimates
The Springfield, Massachusetts-based company reported third-quarter net sales of $162 million, up 2% from a year earlier. Net income was
"Our third-quarter results reflect year-over-year increases in revenue and operating profit,” CEO James Debney said in a statement, citing progress at the company’s new logistics and customer services facility in Missouri.
Gross margin for the quarter was 33.4%, compared with 29.8% a year ago.
Based on long-term sales forecasts for its Electro-Optics operating unit, the company said it decided to restructure and combine that business with its Outdoor Products & Accessories operating unit to drive efficiencies and increase operating performance.
–This story has been updated to give the latest stock price–
Contact Dennis Fitzgerald at [email protected]