The company itself had projected profits around $115 million, while analysts were a bit more gracious and estimated $124.4 million. Smith & Wesson surprised everyone when the reported an impressive $129 million for the fourth quarter, a 28 percent climb in sales since April — when its stock hit a 52-week high.
Where’s all this money coming from? Gun sales are on the rise both nationally and internationally, so gun companies like Smith & Wesson are there to reap the profits. The company has seen an increase of 135 percent in backlogs since the same time last year.
Ruger, on the other hand, has had trouble keeping up with the increased demand for guns. Orders have been piling up and they haven’t been able to produce firearms quickly enough, so they were forced to put a hold on new orders. This move may have caused frustrated gun buyers to look for other options.
Analysts suspect that the increased demand for firearms comes as gun advocates fear that President Barack Obama will be re-elected, which, according to pro-gun advocates like NRA, will likely result in tighter gun control laws. If that’s true, gun sales should continue to rise until November.