On June 20, 2024, Smith & Wesson Brands Inc (SWBI, Financial) released its 8-K filing reporting financial results for the fourth quarter and full fiscal year 2024, ended April 30, 2024. Smith & Wesson Brands Inc is a U.S.-based leader in firearm manufacturing, operating under one reportable segment: Firearms. The company manufactures handguns, long guns, sporting rifles, shooting gear, and suppressor products, with a significant portion of its income generated from the U.S. market.
Fiscal Summary and Performance
Smith & Wesson Brands Inc (SWBI, Financial) reported net sales of $159.1 million for the fourth quarter, surpassing the analyst estimate of $156.80 million. The company also reported earnings per share (EPS) of $0.57, significantly higher than the estimated $0.34. For the full fiscal year 2024, net sales reached $535.8 million, exceeding the annual estimate of $533.48 million, with an EPS of $0.86, outperforming the estimated $0.63.
Key Financial Achievements
Smith & Wesson Brands Inc (SWBI, Financial) achieved a gross margin of 35.5% in Q4, a notable increase from 29.0% in the same quarter last year. The full-year gross margin stood at 29.5%. The company generated $43.6 million in operating cash during the fourth quarter and $106.7 million for the full year. These achievements are crucial for maintaining operational excellence and supporting future growth in the competitive Aerospace & Defense industry.
Income Statement Highlights
| Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 |
|---|---|---|---|---|
| Net Sales | $159.1 million | $144.8 million | $535.8 million | $479.2 million |
| Gross Profit | $56.5 million | $42.0 million | $158.1 million | $154.5 million |
| Net Income | $26.1 million | $12.8 million | $39.6 million | $36.9 million |
| EPS (Diluted) | $0.57 | $0.28 | $0.86 | $0.80 |
Balance Sheet and Cash Flow
As of April 30, 2024, Smith & Wesson Brands Inc (SWBI, Financial) reported total assets of $578.0 million, up from $541.3 million in the previous year. The company maintained a strong balance sheet with $60.8 million in cash and cash equivalents. The total liabilities stood at $179.8 million, compared to $156.7 million in the prior year. The company also reported free cash flow of $15.98 million for the full year, a significant improvement from the negative $72.83 million in the previous year.
Commentary and Future Outlook
"We delivered yet another strong quarter to close out fiscal 2024. I am very proud of the team’s continuing discipline and execution against our strategic initiatives of strong brand messaging and marketing, best-in-class innovation, operational excellence, and business process efficiencies," said Mark Smith, President and Chief Executive Officer.
"Our fourth quarter net sales increased by nearly 10% compared to the comparable quarter last year, while our fiscal 2024 sales increased by nearly 12% year-over-year. Despite a competitive marketplace and inflationary impacts, we expect to grow both net sales and gross margin in fiscal 2025," commented Deana McPherson, Executive Vice President and Chief Financial Officer.
Analysis
Smith & Wesson Brands Inc (SWBI, Financial) has demonstrated robust financial performance in Q4 and the full fiscal year 2024, surpassing analyst estimates in both revenue and earnings. The company's strategic focus on innovation, operational excellence, and brand strength has positioned it well in the competitive firearms market. With a strong balance sheet and a deep pipeline of new products, Smith & Wesson Brands Inc (SWBI) is well-prepared to navigate the challenges of the traditionally slower summer season and continue delivering value to its stockholders.
Explore the complete 8-K earnings release (here) from Smith & Wesson Brands Inc for further details.
