Gun maker again lowers profit outlook

Gun maker Smith & Wesson Holding Corp., of Springfield, again lowered its full-year profit outlook due to higher promotional spending and a plant shutdown, sending its stock plunging in after-hours trading.

The company expects profit of $17 million, or 40 cents per share, in the fiscal year ending in April, 12 cents below the average estimate of analysts polled by Thomson Financial. It expects product sales of $300 million for the year. Analysts expected $321.8 million.

In October, Smith & Wesson lowered its full-year profit guidance to $23.5 million, or 53 cents per share, from an initial outlook of $28.5 million, or 63 cents.

Smith & Wesson expects results to improve toward the end of its fiscal year as high inventory levels moderate.
(AP)