The Times investigation also found evidence that the gun sale surges are motivated in large part in fear of imminent gun control measures – never mind the critics’ argument that Obama’s measures will fail to prevent firearm purchases for the vast majority of Americans. During President Obama’s tenure, shares of Ruger and Smith & Wesson have risen more than 900%.
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“When the government attempts to tighten gun regulation, near-term sales of firearms tend to go up”, said Rommel Dionisio, an analyst at Wunderlich Securities Inc. who covers Smith & Wesson. Ruger also makes concealed carry firearms-its LCP in 380 is one of the most popular concealed carry guns on the market-and Ruger set the tone for lightweight, polymer revolvers with the introduction of the LCR in.
The president has vowed to curb gun violence and unregulated sales after a series of mass shootings, which included last month’s attack in San Bernardino, California, that killed 14 people.
Gun owners are concerned that the new measures will ultimately lead to even stricter regulations.
On Monday, Smith & Wesson increased its sales estimate, saying the market was “more powerful than initially expected”.
For the three months ending January 31, Smith & Wesson estimates that it will have $175 million to $180 million in sales, up from its earlier guidance of $150 million to $155 million. The Standard & Poor’s 500 Index dropped 1.5 percent Monday as stocks sank worldwide.
In announcing its quarterly results, Smith & Wesson said in a statement that “the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms”.
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Smith & Wesson increased its adjusted per-share earnings forecast to a range between 39 cents and 41 cents for the quarter, compared to the prior range between 27 cents and 29 cents per share. The actions are created to help prevent guns from being obtained by criminals and by those who are mentally unstable, Obama said. The broader guideline is aimed at forcing more sellers, particularly those that sell a small number of guns online or at gun shows, to conduct background checks on buyers. The company recently sold its millionth M&P Shield, making it the best-selling personal protection and self-defense pistol today.
