Group 1: Smith & Wesson Brands - Smith & Wesson Brands is currently trading at $8.66, with a 52-week range of $8.38 to $16.85 and a dividend yield of 6.00% [2] - The company faces significant headwinds, including tariffs and revenue deleveraging, which have negatively impacted margins and led to insufficient income to cover the dividend [2][3] - The payout ratio is projected to exceed 150% by the end of fiscal 2025, raising concerns about the sustainability of the dividend [2][3] - Analysts have a consensus rating of Moderate Buy, but sentiment is declining, and the price target is falling, indicating potential further downside risk [4] Group 2: SunCoke Energy - SunCoke Energy is trading at $8.18, with a 52-week range of $7.47 to $12.82 and a dividend yield of 5.86% [6] - The company has headwinds from weaker coal prices; however, its dividend payment is considered safe due to long-term contracts that guarantee cash flow [6][7] - The payout ratio is expected to be around 70% in 2025, which is sustainable for the business [6] - A recent acquisition of Phoenix Global is anticipated to positively impact revenue and profitability, diversifying SunCoke's business [7] - MarketBeat tracks one analyst rating this stock as a Buy, with a price target over 65% above current trading levels, supported by strong institutional ownership [8] Group 3: Tronox Holdings - Tronox Holdings is trading at $5.67, with a 52-week range of $4.35 to $17.45 and a dividend yield of 8.82% [10] - The company reported a net loss for the previous fiscal year, but analysts believe it is at a turning point due to shifts in demand for TiO2 pigments [10][12] - The consensus rating among eight analysts is Moderate Buy, indicating potential for a 50% upside, with recent upgrades from JPMorgan raising the price target to $7 [11] - Tronox's balance sheet is strong enough to sustain the dividend until business conditions improve, with expectations of positive earnings by the end of the fiscal year [12]

Core Viewpoint - Smith & Wesson Inc. reported disappointing fourth-quarter earnings for fiscal year 2025, leading to a 12% drop in stock price, with revenue and earnings per share missing expectations significantly [1][2][6] Financial Performance - Revenue for the quarter was $140.76 million, missing expectations of $153.41 million and down 18% from $159.15 million year-over-year [1][2] - Earnings per share (EPS) were 20 cents, below the expected 23 cents and 55% lower compared to the same quarter last year [2] Market Sentiment - The stock's decline erases previous gains and reflects bearish sentiment among traders, with significant options activity indicating volatility expectations [4][5] - Despite the negative earnings report, there is a potential for swing trading opportunities as the company enters a seasonally strong period, particularly for longarm sales [3][7] Business Environment - Smith & Wesson faces challenges such as excess inventory and margin compression due to slowing consumer demand, compounded by a difficult macroeconomic environment [6] - The company has not provided full-year guidance for fiscal year 2026 due to tariff uncertainties, which may further pressure stock performance [2] Future Outlook - Analysts have a 12-month stock price forecast of $12.75, indicating a potential upside of 46.05% from the current price of $8.73 [9] - Concerns over civil unrest and economic uncertainty may drive demand for firearms, although regulatory concerns could impact future sales [8][10]

Financial Performance - Net sales for fiscal 2025 were $474.7 million, a decrease of $61.2 million, or 11.4%, compared to fiscal 2024[223] - Gross profit decreased by $30.9 million, or 19.6%, with a gross margin of 26.8%, down 270 basis points from the prior year[223] - Net income for fiscal 2025 was $13.4 million, or $0.30 per diluted share, compared to $41.4 million, or $0.89 per diluted share, in fiscal 2024[223] - Operating income decreased by $23.2 million, or 49.3%, to $23.9 million, representing 5.0% of net sales[234] - Net income for fiscal 2025 was $13.4 million, down $27.9 million or 67.5% compared to fiscal 2024, resulting in a diluted net income per share of $0.30[239] - Income tax expense for fiscal 2025 was $5.8 million, a decrease of $4.5 million or 43.8% from fiscal 2024, with an effective tax rate of 30.2%[238] Cash Flow and Investments - Cash used in operating activities was $7.2 million in fiscal 2025, a decline of $113.9 million from cash provided in fiscal 2024[240] - Cash used in investing activities decreased by $62.3 million in fiscal 2025, with capital expenditures of $21.6 million, $69.2 million lower than fiscal 2024[243] - Cash used in financing activities was $9.2 million in fiscal 2025, primarily due to $25.5 million in share repurchases and $23.1 million in dividend distributions[245] - The company expects to spend between $25.0 million and $30.0 million on capital expenditures in fiscal 2026[244] - The company had $25.2 million in cash and cash equivalents on hand as of April 30, 2025[250] Expenses and Costs - Research and development expenses increased by $2.3 million, or 31.8%, primarily due to higher materials and testing costs associated with new product development[232] - Interest expense increased by $2.6 million, or 124.9%, primarily due to higher average debt balances[236] - Inflationary pressures have increased costs for components, parts, raw materials, and labor, expected to continue impacting the company in fiscal 2026[253] Inventory and Sales - Inventory balances increased by $29.3 million between April 30, 2024, and April 30, 2025, due to a slowdown in demand[231] - New products accounted for 42.8% of net sales for the 12 months ended April 30, 2025, including six new pistols and six new long guns[229] Market Overview - The U.S. firearm manufacturing industry grew at a 1.5% compound annual growth rate in units from 2018 through 2023[225] - The annual domestic non-military firearm market is estimated at approximately $2.8 billion for handguns and $1.9 billion for long guns[225] Debt and Compliance - As of April 30, 2025, the company had $80.0 million of borrowings outstanding on its revolving line of credit, with an average interest rate of 6.69%[247] - The company is in compliance with all debt covenants as of April 30, 2025[247]

Group 1 - Smith & Wesson (NASDAQ: SWBI) gained significant attention during the last U.S. presidential election due to differing political views on gun control [1] - The focus is on identifying companies with a market capitalization of less than $10 billion that have a proven ability to reinvest capital for impressive returns [1] - The ideal companies should demonstrate a long-term capability of capital compounding with a high enough compound annual growth rate to potentially deliver tenfold returns or greater [1] Group 2 - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1] - The approach emphasizes maintaining a long-term perspective on investments to generate higher returns compared to market indices [1]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $140.8 million, down $18.4 million or 11.6% compared to the prior year [13] - Gross margin decreased to 28.8%, down 6.7 percentage points from the prior year [14] - Net income for Q4 was $8.6 million, a decrease of $18.7 million from the prior year [15] - GAAP earnings per share (EPS) was $0.19, down from $0.59 in the prior year [15] - Non-GAAP EPS was $0.20, down from $0.48 in Q4 fiscal 2024 [15] - Cash generated from operations was $40.8 million, with net free cash of $33.5 million after capital expenditures [16] Business Line Data and Key Metrics Changes - New products accounted for 44% of total sales in Q4 [6] - Average selling prices (ASPs) decreased by 4.5% year-over-year, with long guns ASPs increasing by 11% and handguns ASPs declining by 6.3% [7][8] - Shipments into the sporting goods channel for long guns declined by 31.7% [7] Market Data and Key Metrics Changes - Overall adjusted market share was down 5.4% in Q4, with an 8.4% decline in shipments [6] - NICS data for long guns was down 7.1% in Q4 [7] - Consumer demand for firearms is cautious due to macroeconomic factors affecting discretionary spending [8] Company Strategy and Development Direction - The company plans to focus on innovation and new product development as a competitive differentiator [6] - Management is extending the summer shutdown by an extra week to align inventory levels with demand [10] - The company aims to prioritize debt reduction and maintain dividend payments [11] Management's Comments on Operating Environment and Future Outlook - Management expects demand for firearms in fiscal 2026 to be similar to fiscal 2025, with potential headwinds from inflation and tariffs [17] - The first quarter of fiscal 2026 is anticipated to be approximately 10% lower than the previous year [17] - Management believes that the exit of smaller competitors from the market may provide opportunities for market share growth [20] Other Important Information - The company reported a $29.3 million increase in inventory due to market softening in the first half of the fiscal year [16] - The effective tax rate is expected to be approximately 30% for the upcoming fiscal year [18] Q&A Session Summary Question: Impact of smaller competitors exiting the market - Management views the exit of smaller players as a potential tailwind for market share growth, with no significant influx of liquidation inventory expected [20][21] Question: Pricing and ASPs in the competitive market - Management believes there is no need for across-the-board pricing cuts, as the brand remains strong and new products are performing well [22] Question: Consumer behavior in response to economic pressures - Demand is still strong at the high-end and entry-level markets, while mid-tier products are seeing a decline [24] Question: Inventory management and shutdown extension - The extra week of shutdown is to better align inventory with demand, particularly in Q2 [25][26] Question: Exposure to tariffs and their impact - Management is monitoring tariff impacts closely, particularly for steel, and is looking for cost control initiatives [30][35] Question: Inventory reduction expectations - Significant inventory reduction is expected throughout the fiscal year, with Q1 typically being the softest quarter [36] Question: Balance sheet and debt repayment - Healthy cash generation is anticipated, with a significant reduction in debt expected as cash is used for repayment [40][41]

Financial Data and Key Metrics Changes - Net sales for the fourth quarter were $140.8 million, which is $18.4 million or 11.6% lower than the prior year comparable quarter [13] - Gross margin decreased to 28.8%, down 6.7 percentage points from the prior year, attributed to lower production volume and increased promotions [14] - Net income for the fourth quarter was $8.6 million, a decrease of $18.7 million compared to the prior year, primarily due to lower net sales and gross margin [15] - GAAP earnings per share (EPS) was $0.19, down from $0.59 in the prior year, while non-GAAP EPS was $0.20, down from $0.48 [15] Business Line Data and Key Metrics Changes - New products accounted for 44% of sales in the fourth quarter, indicating a strong performance in innovation [6] - Average selling prices (ASPs) decreased by 4.5% year-over-year, with long guns ASPs increasing by 11% and handguns ASPs declining by 6.3% [7][8] - In the handgun category, market share was gained despite a 3.4% decline in adjusted mix, while long guns saw a 31.7% decline in shipments [7] Market Data and Key Metrics Changes - Overall adjusted mix was down 5.4%, with an 8.4% decline in shipments into the channel [6] - The firearms market is experiencing cautious consumer behavior due to macroeconomic pressures, with demand for firearms appearing normal for the summer [8][9] - Inventory levels in the channel are being managed conservatively, with a slight increase of about 5,000 units during the quarter [9] Company Strategy and Development Direction - The company plans to focus on innovation and new product introductions to maintain market share leadership [10][11] - An extra week of summer shutdown is planned to better align inventory levels with demand [10] - The company aims to prioritize debt reduction and maintain a strong balance sheet while investing in innovation [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors such as inflation and high interest rates are impacting demand, with expectations for a 10% decrease in first-quarter demand compared to the previous year [17] - Margins are expected to remain under pressure due to low volume and cost increases, particularly from tariffs on raw materials [17] - The company remains optimistic about its market position and plans to leverage its brand strength to maintain ASPs [8][11] Other Important Information - The company generated $40.8 million in cash from operations during the quarter and ended with $25.2 million in cash [16] - The Board authorized a quarterly dividend of $0.13 to be paid to stockholders [16] Q&A Session Summary Question: Impact of smaller competitors exiting the market - Management views the exit of smaller players as a potential tailwind for market share acquisition, with no significant influx of liquidation inventory expected [19][20] Question: Pricing and ASPs in the competitive market - Management believes there is no need for pricing cuts due to strong brand performance and successful new product introductions [22][23] Question: Consumer behavior in response to economic pressures - Demand is still strong in high-end and entry-level markets, while mid to lower-tier segments are trending towards lower-priced products [24][25] Question: Inventory reduction strategy - A significant inventory reduction is expected throughout the year, with Q1 typically being the softest quarter [37] Question: Balance sheet and debt repayment outlook - Healthy cash generation is anticipated, with a significant reduction in debt expected as inventory levels decrease [41][42]

• Q4 Net Sales of $140.8 Million • Q4 Gross Margin of 28.8%; Non-GAAP Gross Margin of 29.2% • Q4 EPS of $0.19/Share Exhibit 99.1 Smith & Wesson Brands, Inc. Reports Fourth Quarter and Full Fiscal 2025 Financial Results MARYVILLE, Tenn., June 18, 2025 – Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the fourth quarter and full fiscal year 2025, ended April 30, 2025. Fourth Quarter Fiscal 2025 Financial H ...

- Q4 Net Sales of $140.8 Million- Q4 Gross Margin of 28.8%; Non-GAAP Gross Margin of 29.2% - Q4 EPS of $0.19/ShareMaryville, Tennessee--(Newsfile Corp. - June 18, 2025) - Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the fourth quarter and full fiscal year 2025, ended April 30, 2025. Fourth Quarter Fiscal 2025 Financial HighlightsNet sales were $140.8 million, a decrease of $18.4 million, or 11.6%, from the compara ...

Company Announcement - Smith & Wesson Brands, Inc. has rescheduled its conference call to discuss the fourth quarter and full fiscal 2025 financial and operational results from June 19, 2025, to June 18, 2025 [1] - The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) [1] Participation Details - Interested parties in North America can participate by dialing 1-877-704-4453, while those outside North America can dial 1-201-389-0920 [2] - Participants are advised to dial in at least 10 minutes prior to the start of the call [2] - A live and archived webcast will be available on the company's website under the Investor Relations section [2] Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of handgun, long gun, and suppressor products under the Smith & Wesson® and Gemtech® brands [3] - The company also provides forging and machining services to third parties [3]

Maryville, Tennessee--(Newsfile Corp. - June 5, 2025) -  Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced it plans to release its fourth quarter and full fiscal 2025 financial results on Thursday, June 19, 2025, after the close of the market. The full text of the press release will be available on the Smith & Wesson Brands, Inc. web site at www.smith-wesson.com under the Investor Relations section.The company will host a conference call an ...