Ahead of the Bell: Smith&Wesson up on sales jump

NEW YORK (AP) — Shares of Smith&Wesson Holding Corp. soared in premarket trading Friday after the pistol maker reported fiscal fourth-quarter sales above Wall Street expectations.

The Springfield, Mass.-about company said Thursday that for the three months ended April 30 sales rose 20 percent to $99.5 million. Analysts polled by Thomson Reuters had expected revenue of $90.8 million.

Smith&Wesson plans to announce complete quarterly results on Monday after the market closes.

Wedbush analyst Rommel T. Dionisio maintained his "Buy" rating on the stock and raised his sales estimate for the 2010 fiscal year, which ends next April, to $393.3 million from $319.3 million.

The company continues to "benefit from the approximate 30 percent growth surge in consumer sales of firearms since the election of a Democratic administration, and resulting fears of tightening gun control laws," Dionisio said.

Merriman Curhan Ford analyst Eric Wold, who reiterated his "Buy" rating on the stock, said the company's increasing order backlog and acquisition plans put it well ahead of its three-to-five year growth plan.

"We continue to believe the increasing strength in core handgun sales (partly from recessionary fears as well as a concern over potential legislative actions to be taken by the Obama administration) will drive accelerating demand as we move into the new fiscal year," Wold wrote.

In premarket trading shares jumped 91 cents, or 18.5 percent, to $5.84. The stock has ranged from $1.53 to $7.52 over the past year.