American Outdoor Brands (which owns Smith & Wesson) and Sturm Ruger stocks are collapsing in after-hours trading following AOBC slashing its sales and earnings guidance and warning that lower levels of firearm demand may continue for some time.
The company reported much lower revenue than expected in fiscal third-quarter earnings Thursday, and offered a revenue forecast that was even more off of expectations…
Chief Executive James Debney said in Thursday’s announcement…
“We believe that the new, lower levels of consumer firearm demand we saw reflected in the January NICS results may continue for some time,”
“Going forward, we will operate our business under the assumption that the next 12-18 months could deliver flattish revenues in firearms.”
“Overall, our long-term strategy remains focused on being the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast.”
The haves and have-notes are clear…AK Steel is having a great day but Sturm Ruger and Smith & Wesson are crashing…
AOBC is now at its lowest since June 2012…
