Smith & Wesson shares drop following 2-day pop

Outdoor Holding

27/06/2022 20:13

** Shares of gun maker Smith & Wesson  SWBI.O  down 11.0%,
after notching big gains in prior two sessions
    ** SWBI's shares on Fri gained 14.5% amid surge in security
plays after U.S. Supreme Court (SCOTUS) overturned 1973 Roe v.
Wade abortion landmark ruling, sparking protests around the
country. Gun stocks tend to rise amid civil unrest  urn:newsml:reuters.com:*:nL1N2YB1DP
 urn:newsml:reuters.com:*:nL1N2YC0CW
    ** Stock on Thurs bounced 9.6% off 18-mth low in wake of
SCOTUS striking down New York state's gun control law
 urn:newsml:reuters.com:*:nL1N2YA1GY
    ** After the bell Thurs, SWBI reported Q4 rev fall of ~44%
yr/yr to $181.3 mln, edging past consensus of ~$180 mln, per
Refinitiv IBES, and boosted its cash dividend by 25%
    ** When asked for commentary on SCOTUS ruling, CEO Mark
Smith said, "So just broadly on the ruling, I mean, it simply
clarifies that responsible law abiding citizens don't need to
ask the government's permission to exercise their constitutional
rights."
    ** "And insofar as impact to concealed carry in our
products, concealed carry is a pretty big portion of our market.
We expect as it expands the access of those products to those
law abiding citizens, that will have a positive impact on us,"
Smith said, adding "That is probably too early to tell."
    ** Click here to access earnings call transcript
 urn:newsml:reuters.com:*:nTRNbqBBvz
    ** Peer Sturm Ruger & Co  RGR.N  down 1.5% on Mon. Its
shares had advanced ~7% in prior two sessions
    ** Over the past year, SWBI has lost ~50%, while RGR down
~25%, including moves on Mon

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))