Smith & Wesson stock was up about 18 percent Friday following the Supreme Court’s decision to uphold President Obama’s controversial health care law.
The gun maker announced strong fourth quarter earnings on Thursday; net sales were a record $130 million, an increase of nearly 30 percent compared to the fourth quarter of 2011.
Gross profit for the fourth quarter was $46.9 million, or 36.1% of net sales, compared with gross profit of $31.2 million, or 30.7% of net sales, for the comparable quarter last year. Gross profit was positively impacted in the quarter by significant one-time benefits relating to reductions in inventory and legal reserves. In addition, the higher production volume allowed for increased overhead absorption. Higher sales volume, cost savings efforts, reduced promotion costs, and a favorable product mix also contributed to the improvement.