Smith & Wesson Brands, Inc ( SWBI ). shares plunged 7.99% in after-hours trading on Thursday after the firearms manufacturer reported third-quarter fiscal results that missed analyst revenue expectations.

What Happened: The Maryville, Tennessee-based company reported quarterly revenue of $115.9 million, falling short of the estimated $119.5 million, reflecting a 2.99% decline, according to data from Benzinga Pro.

Net sales were down 15.7% compared to the same quarter last year. SWBI reported earnings per share of $0.04, while adjusted EPS came in at $0.02, down significantly from $0.19 in the comparable quarter last year.

“Our top line revenue for the third quarter came in slightly below our target range,” said Mark Smith, President and Chief Executive Officer. “However, lower operating expenses and leveraging of our flexible manufacturing model allowed us to deliver on EPS and EBITDAS expectations.”

Gross margin declined to 24.1% from 28.7% in the comparable quarter last year, reflecting pressure on the company’s core product portfolio. Non-GAAP Adjusted EBITDAS was $13.3 million, or 11.5% of net sales, compared with $21.4 million, or 15.6% of net sales, a year ago.

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Why It Matters: Despite weaker results for existing products, Smith said, “new products continue to perform very well,” accounting for over 41% of sales in the quarter, suggesting potential market share gains in those categories.

“We anticipate that the firearms market will remain steady at current demand levels,” Smith added, maintaining the company’s previous guidance of full-year revenue 5-10% lower than fiscal 2024.

The company’s board declared a quarterly dividend of $0.13 per share, payable on Apr. 3, to stockholders of record on Mar. 20.

Smith & Wesson’s 2025 lineup includes the Model 1854 lever-action rifle in .357 Magnum (walnut or polymer furniture) and a “Stealth Hunter” variant with a shorter barrel, M-LOK forend, and HIVIZ sights, according to Hook & Barrel Magazine. The No-Lock Classic Revolvers bring back the Model 36, Model 10, and Model 19 without internal locks. New Lipsey's Exclusive revolvers include the lightweight Model 632-UC Ti (.32 H&R Mag) and the 686-Plus and 629 Mountain Guns with walnut grips. The CSX E-Series micro-compacts now feature optics-ready designs and improved grip modularity.

For 2024, Smith & Wesson introduced the M&P 22 Magnum (30-round), Performance Center M&P 10mm (ported barrel), and Model 1854 .44 Magnum.

Price Action: SWBI stock closed Thursday at $11.02, up 2.04% in regular trading, before falling to $10.14 in after-hours trading. The stock is up 10.42% year-to-date but down 16.32% over the past year.

Smith & Wesson Brands Inc. ( SWBI ) has a $13 consensus price target, with Lake Street setting both the high and low. Recent ratings from Lake Street and Craig-Hallum imply a 28.21% upside.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.