Smith & Wesson revenue tops expectations

Pistol maker Smith & Wesson Holding Corp. reported fourth-quarter revenue above Wall Street expectations yesterday, sending shares up nearly 12 percent in aftermarket trading.

The company said its fiscal 2009 fourth-quarter revenue rose 20 percent to $99.5 million. Analysts polled by Thomson Reuters had expected revenue of $90.8 million, on average.

"Demand for our handguns and tactical rifles remained strong throughout the fourth quarter, as evidenced by our revenue as well as by our backlog balance," the company said in a statement.

Meanwhile, the company said it is buying Universal Safety Response Inc. in a cash-and-stock deal worth more than $26 million as part of a move to expand into the perimeter security market. Franklin, Tenn.-based USR makes the GRAB vehicle safety barrier and serves clients in the defense and transportation industries, as well as airports and national laboratories.

Looking ahead the company anticipates the buyout will contribute $50 million in fiscal 2010 sales and $100 million in fiscal 2011.

Shares of Smith & Wesson rose 57 cents, or 11.6 percent, to $5.50 in after-hours electronic trading, having closed earlier at $4.93. The stock has traded between $1.53 and $7.52 over the last 52 weeks. (AP)