What to Expect from Smith & Wesson Holding

Smith & Wesson Holding (Nasdaq: SWHC  ) is expected to report Q2 earnings around Dec. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Smith & Wesson Holding's revenues will grow 47.5% and EPS will grow 2300.0%.

The average estimate for revenue is $136.1 million. On the bottom line, the average EPS estimate is $0.24.

Revenue details
Last quarter, Smith & Wesson Holding logged revenue of $136.0 million. GAAP reported sales were 48% higher than the prior-year quarter's $91.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.28. GAAP EPS of $0.26 for Q1 were much higher than the prior-year quarter's $0.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 37.7%, 760 basis points better than the prior-year quarter. Operating margin was 23.0%, 1,580 basis points better than the prior-year quarter. Net margin was 13.1%, 1,220 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $537.9 million. The average EPS estimate is $0.91.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 844 members out of 909 rating the stock outperform, and 65 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 197 give Smith & Wesson Holding a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Wesson Holding is outperform, with an average price target of $10.20.

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