Major firearm maker Smith & Wesson Holding Corporation (NASDAQ:SWHC) reported quarterly earnings that were far higher than its last report, sending the company's small cap stock surging skyward.
According to Zacks Equity Research, adjusted earnings came in at 28 cents per share in the first fiscal quarter of 2013, compared with 4 cents per share in the same period last year. This was 55.5 percent higher than the average estimate of Zacks analysts, which called for 18 cents per share. Total sales came in at $136 million in the studied period, a 48.3 percent increase from the $91.7 million reported last year.
Smith & Wesson attributed the higher revenue to strong sales of the M&P production platform, the media outlet stated.
Gross profit climbed to 37.7 percent of total sales, compared with 29 percent the previous year. The company said it will use its funds to continue its research and development initiatives to create new products.
As of 4:47 p.m. on Friday, September 7, Smith & Wesson's stock was up 11.9 percent, or $1.07, to $10.07.