America’s leading gun maker is raising its targets.
Smith & Wesson shares soared 13% Wednesday as the company announced that firearm orders are picking up again. Sales in recent weeks have been better than expected.
The company now forecasts sales of between $175 million to $179 million for the quarter. That’s up 8% from its projection just six weeks ago and will help boost the company’s earnings as well.
Investors see potential in the gun market again. The company’s stock is now up a whopping 50% since the start of 2015.
Smith & Wesson gun sales hit a record of $626.6 million last year. The company won’t be anywhere near that for this fiscal year, which runs through the end of April, but the pick up in orders recently may signal a turning point. Its latest projection is for full-year sales of between $546 million and $550 million.
Investors appear to be reading this latest projection as a sign of the market getting back on track.
Strum, Ruger & Co., the other publicly traded U.S. firearm manufacturer, also saw its shares jump almost 10% in early trading. Its stock has also jumped phenomenally since the start of the year.