Shares of Smith & Wesson Brands Inc. rallied again Friday, as better-than-expected earnings and a dividend hike followed a decision by the Supreme Court of the United States to strike down a New York gun-control provision.
The gun maker’s stock
soared 14.5% to , after running up 9.6% on Thursday. The two-day climb of 25.5% came after the stock closed at a two-year low on Wednesday
Meanwhile, shares of fellow firearms company Sturm, Ruger & Co. Inc.
have bounced 71% in two days, after closing Wednesday at an 18-month low.
In a post-earnings conference call with analysts, Lake Street Capital’s Mark Smith asked for a comment about the Supreme Court ruling, which said the New York law that forbids people from obtaining a permit to carry a handgun publicly unless a special need is demonstrated violated the U.S. Constitution’s Second and Fourteenth Amendments.
“So, broadly on the ruling, I mean, it simply clarifies that responsible, law-abiding citizens don’t need to ask the government’s permission to exercise their constitutional rights,” Chief Executive Officer Mark Smith said, according to a FactSet transcript. “And insofar as impact to concealed carry in our products, concealed carry is a pretty big portion of our market, we expect that, as it expands the access of those products to those law-abiding citizens that they’ll have a positive impact on us,”
CEO Smith said it was “probably too early” to tell what that impact on earnings might be.
Separately, the company reported late Thursday net income for the fiscal fourth quarter to April 30 of $36.1 million, or 79 cents a share, compared with $89.2 million, or $1.70 a share, in the same quarter a year ago.
Excluding nonrecurring items, adjusted earnings per share of 82 cents beat the FactSet consensus of 57 cents.
Revenue fell 44% to $181.3 million, but was above the FactSet consensus of $168 million.
The company said average selling prices rose by nearly 12%, while unit volumes…