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Smith & Wesson shares surge after strong fourth-quarter results

A man checks out a model S&W500 handgun at the Smith & Wesson booth during the 2016 National Shooting Sports Foundation's Shooting, Hunting, Outdoor Trade (SHOT) Show at the Sands Expo and Convention Center in Las Vegas, Nevada.
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A man checks out a model S&W500 handgun at the Smith & Wesson booth during the 2016 National Shooting Sports Foundation's Shooting, Hunting, Outdoor Trade (SHOT) Show at the Sands Expo and Convention Center in Las Vegas, Nevada.

Shares of Smith & Wesson rose more than 8 percent Friday on the heels of better-than-expected quarterly results.

On Thursday, the gunmaker reported adjusted fiscal fourth-quarter earnings of 66 cents a share on revenue of $221.1 million. Analysts polled by Reuters expected profits of 54 cents a share on revenue of $214.5 million.

"We continued to successfully execute on our long-term strategy, while delivering financial and operational results that set a number of new company records," CEO James Debney said in a statement.

The company's quarterly report drew greater scrutiny for investors following the Orlando shooting massacre on Sunday, which Smith & Wesson did not mention it in its statement.

Analysts at Wedbush Securities said following the earnings release that "SWHC shares should benefit from not only a sizeable 4Q beat but also a view among investors that the solid guidance given on Thursday is beatable given what is assumed to be a surge in demand in coming months following the Orlando tragedy."

"Beyond a short term bump in these shares, however, SWHC faces exceedingly difficult comparisons, and so investors will be watching closely beyond a strong 1Q for signs of sustainable momentum during the remainder of the year," the analysts said in a Thursday note to clients.

Smith & Wesson's stock has skyrocketed more than 49 percent in the past year.

SHWC 12-month chartSource:FactSet

Disclosure: Wedbush makes a market in Smith & Wesson.