Smith & Wesson Brands is scheduled to report earnings after today’s close. The stock hit a record high of $39.61/share in 2021 and is currently trading near $18/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a gain of $0.88/share on $193.72 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.84/share. The Whisper number is the Street's unofficial view on earnings.
A Closer Look At The Fundamentals:
The company enjoyed tremendous earnings growth during 2021 compared to 2020’s numbers. In 2021, the company’s annual earnings per share (EPS) was $4.55, which is sharply higher than 2020’s number of $0.68. In 2022, the company is expected to earn $4.47 which is about the same as 2021’s number. 2023’s number is expected to fall to $2.88 which is around 40% below 2022’s number. We’ll see what actually happens but for now, earnings have grown steadily in recent quarters.
A Closer Look At The Technicals:
The stock soared in the first half of 2021 and then topped out in the summer of 2021 and has been in a private bear market since then. For now, the stock is trying to bottom and the bulls want to see it rally above $18.94 and then see if a new uptrend can develop. For now there is a lot of overhead resistance that the stock has to work through before it can hit new highs.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock was previously featured in FindLeadingStocks.com.
