Smith & Wesson stock shoots up on earnings beat

An attendee walks through the Smith and Wesson booth during the 2013 NRA Annual Meeting and Exhibits in Houston, May 3, 2013.
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Shares in Smith & Wesson shot up about 9 percent in Tuesday after-hours trading when the company beat estimates on both the top and bottom lines.

The company posted third-quarter adjusted earnings per share of 20 cents on revenue of $131 million. Analysts had expected the company to report earnings of about 11 cents a share on $123 million in revenue.

The gunmaker also gave earnings guidance for next quarter above Wall Street estimates.

"Our third quarter results reflect the successful navigation of a normalizing firearm market following an earlier consumer surge in firearm purchases, combined with the ongoing focused execution of our long-term strategy," James Debney, Smith & Wesson president and CEO said in the company's earnings release.

"Sales in our firearm division exceeded our updated expectations, reflecting solid orders from distributors and key retailers at the start of our annual industry show season in January," he continued, adding that "our products remain popular with consumers and our internal data indicates that we remained the market leader in the handgun and the modern sporting rifle categories."