Smith and Wesson shares tumble

Shares of Springfield gun maker Smith and Wesson Holding Corp. fell in morning trading today after the company lowered its profit outlook yesterday.

In morning trading today on the Nasdaq Stock Market, Smith and Wesson shares had dropped 28 percent, or $2.80, to $7.12.

The company lowered its outlook because of higher promotional spending and a plant shutdown.

While Smith and Wesson reported yesterday that its profit rose 3 percent for the quarter that ended Oct. 31, the company also said it expects profit of $17 million, or 40 cents per share, for fiscal year ending in April; that's 12 cents below the average estimate of analysts polled by Thomson Financial.

The company issued its forecast after previously saying in October that sales might be hurt by softness in the hunting market.
(By Chris Reidy, Globe staff and AP)