Why Smith & Wesson (SWBI) Stock Is Down Today
Shares of american firearms manufacturer Smith & Wesson (NASDAQ:SWBI) fell 19.1% in the afternoon session after the company reported disappointing first quarter 2025 (fiscal Q4) results as its revenue, EPS, and EBITDA fell short of Wall Street's estimates.
Management noted the quarter was challenging, citing macro and industry trends, which negatively affected volume. They added further that consumers were being cautious with the purchase of firearms, though they noted improved performance in newer products and lower-priced products. Overall, this quarter could have been better, given the macro challenges.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Smith & Wesson? Access our full analysis report here, it's free.
Smith & Wesson's shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Smith & Wesson and indicate this news significantly impacted the market's perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 20.5% on the news that the company reported disappointing third quarter results. Its revenue, EPS, and EBITDA fell short of Wall Street's estimates. Management attributed the shortfall to a normalization in firearm demand, largely driven by inflationary pressures. They also observed heightened consumer caution around discretionary spending, which was more pronounced in the second quarter than previously anticipated. Given the soft demand trends, the company lowered its sales outlook for the next quarter and the second half of the fiscal year. Overall, this quarter could have been better.
Smith & Wesson is down 11.8% since the beginning of the year, and at $8.81 per share, it is trading 47.2% below its 52-week high of $16.69 from July 2024. Investors who bought $1,000 worth of Smith & Wesson's shares 5 years ago would now be looking at an investment worth $476.61.
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Hamilton Spectator
31 minutes ago
- Hamilton Spectator
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Yahoo
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Yahoo
37 minutes ago
- Yahoo
Tariffs may lead to more expensive fireworks across the metro this year
EDWARDSVILLE, Kan. — Tariffs enacted by the Trump administration might make fireworks more expensive this year. 'Yeah, we're seeing the prices go up a little bit and like everything is up a little bit,' said Mark Tibbits, the owner of Hot Mama's Fireworks in Edwardsville, Kansas. 'And we have the smallest markup around.' Fireworks explosion injures two children in Kansas City, Kansas Tibbits has been running Hot Mama's Fireworks for the past 5 years, and since they started, he's seen firework prices double in some cases. However, he says you might want to bring some extra cash to the fireworks stand this year, due to the tariffs. '10% or so this year,' he said. 'Some of the stuff has the same price as last year, but a lot of it has gone up. The majority of it's a little higher.' Tibbits said that customers have been feeling price increases in other industries, and it's become somewhat routine to pay more these days. 'We've all seen it, we've all felt it,' said Tibbits. 'Everybody knows the prices have gone up on everything now. So, I think customers are just kind of getting used to it.' One Hot Mama's customer approached the stand on Wednesday. He wasn't able to buy fireworks, as Hot Mama's opens on Friday, but said that he doesn't mind paying more. Where to watch fireworks in the Kansas City-area this year 'I'll pay the tariffs,' he said. 'If it gouges those people the way that it gouges us in the United States, I'll pay for it. I'll pay a little bit extra. Maybe we'll get a little bit more made in the United States.' Tibbits said that the rising costs make operating the fireworks stand more challenging. 'It makes it tough, you know, because we've been around the community for, you know, quite a few years now here,' he said. 'So, we try to bring the customers the best prices we can and then we see our costs go up on everything, and then tent prices go up and up, land prices go up, so, you try to keep your prices the best you can.' Despite the rise in cost, Tibbits thinks that business will be good again this year. Download WDAF+ for Roku, Fire TV, Apple TV 'The American people still love getting fireworks to celebrate everything, celebrate our freedom,' Tibbits added. Hot Mama's opens Friday at 9 a.m. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
