The Consensus EPS Estimates For Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Just Fell Dramatically

Market forces rained on the parade of Smith & Wesson Brands, Inc. (NASDAQ:SWBI) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, the three analysts covering Smith & Wesson Brands provided consensus estimates of US$491m revenue in 2025, which would reflect a measurable 4.6% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to plunge 52% to US$0.39 in the same period. Prior to this update, the analysts had been forecasting revenues of US$561m and earnings per share (EPS) of US$0.92 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Smith & Wesson Brands

It'll come as no surprise then, to learn that the analysts have cut their price target 18% to US$15.33.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 8.9% annualised revenue decline to the end of 2025 is roughly in line with the historical trend, which saw revenues shrink 8.0% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Smith & Wesson Brands to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Smith & Wesson Brands' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Smith & Wesson Brands going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.