Monday, March 4, 2013

Smith & Wesson (SWHC), Sturm Ruger (RGR) Gun Sales Soar

The more the government attempts to clamp down on the right to bear arms, the more guns sales soar, as evidenced by the surge in gun sales as gun manufacturers like Smith & Wesson (NASDAQ: SWHC) and Sturm Ruger (NASDAQ: RGR).

Some retailers are also doing much better because of gun sales, including outdoors suppliers such as Big 5 Sporting Goods (NASDAQ: BGFV), which reported results exceeding analysts' projections, largely because of the boost in gun sales.

Sturm Roger recorded a huge increase in quarterly sales in its earnings report last week; jumping by 52 percent during that period. Smith & Wesson will report on Tuesday.

Expectations are high for Smith & Wesson, with earnings projected to soar 229 percent to 23 cents a share in its latest quarter. Revenue estimates for the quarter are for the company to generate $133.68 million, an increase of 36.2 percent over last year in the same quarter.

When measured by the number of background checks for the acquisition of guns, the number of people buying guns is confirmed as skyrocketing. In December they rose by 49 percent, in January 81 percent, and in February 32 percent.

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