Smith & Wesson Brands (NASDAQ:SWBI) Shares Gap Up After Better-Than-Expected Earnings

Posted by Brenda Bartman on Sep 4th, 2026

Smith & Wesson Brands, Inc. (NASDAQ:SWBI – Get Free Report)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $12.27, but opened at $14.12. Smith & Wesson Brands shares last traded at $12.4040, with a volume of 497,274 shares changing hands.

The company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.12. Smith & Wesson Brands had a net margin of 3.53% and a return on equity of 5.01%. The business had revenue of $129.37 million for the quarter, compared to analyst estimates of $98.70 million. During the same quarter in the prior year, the business posted ($0.08) EPS. The company’s revenue for the quarter was up 32.3% on a year-over-year basis.

Smith & Wesson Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 17th will be paid a dividend of $0.13 per share. The ex-dividend date is Thursday, September 17th. This represents a $0.52 annualized dividend and a yield of 4.2%. Smith & Wesson Brands’s dividend payout ratio is presently 130.00%.

Smith & Wesson Brands News Roundup

Here are the key news stories impacting Smith & Wesson Brands this week:

Positive Sentiment: Strong quarterly performance: Fiscal Q1 revenue rose 32.3% year over year, while earnings were $0.06 per share versus the consensus estimate for a loss of $0.06. Reported sales were substantially ahead of expectations, supported by handgun and long-gun demand, new products and a favorable product mix. Smith & Wesson Brands Reports First Quarter Fiscal 2027 Financial Results
Positive Sentiment: Upbeat outlook: Management projected fiscal 2027 revenue of approximately $550.0 million to $560.5 million, implying 5% to 7% growth, and guided second-quarter revenue to about $137.1 million—above the roughly $132.2 million consensus estimate. Q2 sales are expected to be about 10% higher than last year. Smith & Wesson Projects Fiscal 2027 Revenue Growth
Positive Sentiment: Analyst upgrade: Seeking Alpha upgraded SWBI from “hold” to “buy,” citing the earnings beat, attractive valuation, improving background-check data and evidence that recent product launches are strengthening end-user demand. I Have To Pull This Trigger On Smith & Wesson
Positive Sentiment: Shareholder return: The company declared a quarterly dividend of $0.13 per share, payable October 1 to shareholders of record September 17. The indicated annualized yield is approximately 4.2%, which may support investor interest.
Neutral Sentiment: The earnings call provided additional detail on demand trends, new-product execution and fiscal 2027 priorities. Investors will continue to monitor whether the improved demand environment is sustained and whether margins convert the sales growth into stronger profitability. Smith & Wesson Q1 2027 Earnings Call Transcript

Wall Street Analyst Weigh In

SWBI has been the subject of several research reports. Lake Street Capital lifted their target price on Smith & Wesson Brands from $14.00 to $16.50 and gave the stock a “buy” rating in a research report on Thursday, June 18th. Weiss Ratings downgraded Smith & Wesson Brands from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Finally, Zacks Research raised Smith & Wesson Brands to a “hold” rating in a research report on Tuesday, June 23rd. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $16.50.

Get Our Latest Report on Smith & Wesson Brands

Institutional Investors Weigh In On Smith & Wesson Brands

A number of hedge funds have recently made changes to their positions in SWBI. Allworth Financial LP acquired a new position in shares of Smith & Wesson Brands during the second quarter worth approximately $27,000. Western Wealth Management LLC bought a new position in shares of Smith & Wesson Brands in the first quarter worth $34,000. Caitong International Asset Management Co. Ltd acquired a new position in Smith & Wesson Brands during the 4th quarter valued at about $30,000. Public Employees Retirement System of Ohio bought a new stake in Smith & Wesson Brands during the second quarter worth approximately $59,000. Finally, Legal & General Group Plc bought a new stake in shares of Smith & Wesson Brands in the 2nd quarter worth $65,000. Institutional investors own 59.33% of the company’s stock.

Smith & Wesson Brands Trading Up 1.9%

The company has a quick ratio of 1.13, a current ratio of 3.20 and a debt-to-equity ratio of 0.14. The firm’s 50-day simple moving average is $14.46 and its 200 day simple moving average is $14.42. The stock has a market capitalization of $560.63 million, a P/E ratio of 31.18 and a beta of 0.86.

About Smith & Wesson Brands

(Get Free Report)

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.