Shares of Smith & Wesson Brands Inc (SWBI) plummeted 15.77% in pre-market trading on Friday, following the firearms manufacturer's disappointing fiscal Q2 2025 earnings report. The company missed Wall Street's expectations on both the top and bottom lines.
For the quarter ended October 31, SWBI reported adjusted earnings per share of $0.11, well below the consensus estimate of $0.17. Revenue grew just 1.7% year-over-year to $127.1 million, missing analysts' expectations of $133.5 million.
The weak results extend a challenging period for SWBI, whose sales have declined 4.5% annually over the past two years amid soft demand. Analysts were underwhelmed by the Q3 performance, with the stock dropping 12.8% immediately following the earnings release. Looking ahead, while Wall Street expects revenue growth of 12.4% over the next 12 months, doubts remain over SWBI's ability to reignite sustainable growth and improve profitability.
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