Smith & Wesson Brands Inc

Consumer discretionary leisure products stocks reported strong fourth-quarter results, with aggregate revenues beating analyst consensus estimates by 5.2%. However, next quarter's revenue guidance came in 3.4% below expectations. Polaris reported revenues of $1.94 billion, up 9% year on year and exceeding estimates by 6.8%, but its full-year EPS guidance significantly missed expectations. Smith & Wesson was the best performer with revenues of $178.4 million, up 26.7% year on year and beating estimates by 14.9%. Ruger was the weakest, with revenues of $141.4 million, up 4.1% year on year, but it significantly missed EPS and adjusted operating income estimates. MasterCraft reported revenues of $78.21 million, up 3% year on year and beating estimates by 3.7%, while Brunswick reported revenues of $1.38 billion, up 12.8% year on year and beating estimates by 4.1%. Share prices of the tracked companies have been resilient, up 6.7% on average since the latest earnings results.

The consumer discretionary sector saw mixed Q1 results, with revenues beating analyst estimates by 2% on average but next-quarter guidance coming in 4.1% below expectations. Sysco reported revenues of $20.52 billion, up 4.7% year-on-year and in line with estimates, while Smith & Wesson posted the best performance with revenues of $178.4 million, a 26.7% increase that beat expectations by 14.9%. Leggett & Platt was the weakest, with revenues of $918.2 million, down 10.2% and missing estimates by 3.3%. Wyndham and Figs also reported, with Figs seeing a 28% revenue jump to $159.9 million but its stock falling 26.5% since the release.

Performance Food Group reported first-quarter revenues of $16.29 billion, up 6.4% year on year and exceeding analyst expectations by 0.8%. The food distributor, which operates 155 distribution centers and serves over 300,000 locations across North America, delivered full-year revenue guidance in line with estimates but missed adjusted operating income projections. Its stock has risen 23.4% since the earnings release. Among the 141 consumer discretionary stocks tracked, the group overall beat revenue consensus by 2% while next-quarter guidance came in 4.1% below estimates, and shares have averaged a 3.8% gain since reporting. Smith & Wesson posted the strongest results with a 26.7% revenue jump and a 14.9% beat, while Leggett & Platt was the weakest, with revenue down 10.2% and missing estimates by 3.3%.

Smith & Wesson Brands jumped nearly 24% in early trading Thursday after reporting strong fourth-quarter results. The firearm manufacturer posted non-GAAP earnings per share of $0.36, beating market estimates by $0.13, while revenue of $178.4 million exceeded expectations by $23.13 million. Full-year net sales rose 10.4% to $523.8 million, and non-GAAP net income reached $18.4 million, or $0.41 per diluted share, compared with $14.6 million, or $0.33 per diluted share, in the prior fiscal year. CEO Mark Smith said the company outperformed competitors in core categories and made progress in new segments, while CFO Deana McPherson noted that handgun shipments drove the beat, with unit sales into the sporting goods channel up 23.2% over the prior year. The board authorized a $0.13 per share quarterly dividend payable on July 15, 2026 to stockholders of record on July 1.

Intel shares soared nearly 9% in premarket trading after President Donald Trump said the company struck a deal with Apple to design and build chips in the United States. The announcement lifted other chipmakers, with Marvell Technology rallying nearly 7% and Lam Research and Applied Materials each rising about 5%. Memory stocks also gained, as Western Digital added 5.6% and Micron Technology and Sandisk each climbed about 4%. In other moves, Accenture tumbled 13% after agreeing to acquire runZero, Netrise, and a majority stake in Dragos in a combined deal valued at approximately $4.175 billion, while Smith & Wesson jumped 14% on an earnings and revenue beat and a 23% year-over-year increase in handgun sales to sporting goods retailers. Cruise operators advanced on falling oil prices, with Carnival up 3% and Royal Caribbean and Norwegian Cruise Line adding roughly 2%, while airlines including United Airlines, Delta Air Lines, and American Airlines also rose about 2%. Pfizer fell 1% after announcing CFO Dave Denton will step down on August 15, and SpaceX shed 1.2% following a 5% loss on Wednesday after surging more than 40% last week.

Smith & Wesson Brands expects full fiscal 2027 revenue to grow in mid-single digits compared to fiscal 2026, with first-quarter revenue projected to be 15% to 20% higher than the prior year. The company also plans approximately $20 million in incremental capital expenditures at its Springfield, Massachusetts machining center of excellence, on top of its usual annual spend of $25 million to $30 million, to expand capacity and improve operational efficiency. In the fourth quarter of fiscal 2026, net sales rose 26.7% to $178.4 million, beating analyst estimates, while adjusted earnings per share of $0.36 also exceeded expectations. New products accounted for 37.5% of quarterly revenue, and the company generated $74.6 million in cash from operations, ending the period with a net cash position of $8.2 million. Management cited tariffs and inventory reserves as ongoing margin headwinds and noted that first-quarter average selling prices are expected to be sequentially lower by about 5% due to mix.