Smith & Wesson raises forecast

Shares of gun maker Smith & Wesson Holding Corp. rose in premarket electronic trading today after the company raised its fiscal 2008 profit forecast.

The Springfield, Mass.-based company pointed to robust sales of new shotguns and hunting rifles, as well as better sales to law enforcement, government and international markets. It now expects to earn 63 cents per share for the year, 1 cent per share higher than its previous forecast, which matches the estimate of analysts polled by Thomson Financial.

Smith & Wesson reiterated its forecast of $330 million in sales, about $4 million below analyst estimates.

Merriman Curhan Ford analyst Eric Wold kept a "Buy" rating on the stock. He said Smith & Wesson holds about a 10 percent share of the domestic law enforcement market, but sales of its military and police pistols are improving quickly.

"With almost 18,000 law enforcement agencies (and 800,000 officers) up for grabs within the United States, we believe the company has only just begun to scratch the surface," he said. "We have estimated the domestic law enforcement market to represent about $100 million in annual sales."

The company said 231 law enforcement agencies use or have approved the military and police pistols.

After the bell on Thursday, Smith & Wesson reported stronger fiscal first-quarter earnings and sales than analysts expected.

The stock gained 96 cents, or 4.8 percent, to $21 in premarket trading. Shares finished at $20.04 Thursday. (AP)