Shares of firearms manufacturer Smith & Wesson Brands (NASDAQ:SWBI) are little changed in today’s trading as investors await its Q4 earnings results on June 20 after the market closes. Analysts are expecting earnings per share to come in at $0.36 on revenue of $156.8 million. This equates to 12.5% and 8.3% year-over-year increases, respectively, according to TipRanks’ data.
Earnings per share growing faster than revenue is ideal as this demonstrates a high degree of operating and financial leverage in the business. It’s also worth noting that Smith & Wesson has beaten earnings estimates in five of its last eight quarters, as pictured below:
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 12.18% move in either direction.
Is SWBI Stock a Buy?
Turning to Wall Street, two analysts are covering SWBI stock, and both have Buy ratings. Five-star analyst Mark Smith has assigned a $16 price target, which implies a slight downside risk from current levels. It’s worth noting that, so far, Smith has enjoyed a 54% success rate on SWBI stock, with an average return of 32.45% per rating.
