Smith & Wesson Miss On Q3 Earnings, Margins Shrink

• Smith & Wesson Brands Inc (NASDAQ:SWBI) reported a third-quarter FY22 sales decline of 31% year-on-year, to $177.7 million, missing the consensus of $198.29 million.
• The gross margin contracted by 300 basis points Y/Y to 39.6%.
• The operating margin was 22.3%, and operating income for the quarter fell 50.5% to $39.7 million.
• The adjusted EBITDAS declined 42% Y/Y to $51.9 million, and the adjusted EBITDA margin compressed 570 basis points to 29.2%.
• Adjusted EPS of $0.69 missed the consensus of $0.86.
• The company held $107.3 million in cash and equivalents as of January 31, 2022. Cash provided by operating activities for nine months totaled $112.3 million.
• The company's quarterly dividend of $0.08 per share will be paid to stockholders of record on March 17, 2022, with payment to be made on March 31, 2022.
• Price Action: SWBI shares are trading lower by 20.2% at $14.28 in premarket on the last check Friday.