Smith & Wesson (NASDAQ: SWHC) reported Q2 EPS of $0.09, $0.02 better than the analyst estimate of $0.07. Revenue for the quarter came in at $108.4 million versus the consensus estimate of $105.8 million.

James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, stated, "Results for the second quarter met our expectations as we continued to navigate the consumer firearm market as it returns to a more normalized environment. We again expanded our line of M&P® firearms by adding four new competition-ready pistol models with the launch of our M&P Performance Center® Ported series. These new models offer discerning customers new choices and premium features. Our broad product offerings remain popular with consumers and our internal data indicates that we remained the market leader in both the handgun and the modern sporting rifle categories. We think the strong consumer preference for our products helped lower Smith & Wesson inventory in our distribution channel by more than 18% in the second quarter. We are extremely pleased with that reduction and, in fact, believe that we have the lowest inventory in the channel of any major firearm manufacturer. Unfortunately, we expect that the excess channel inventory of other manufacturers' products will continue to reduce the open-to-buy for distributors and retailers for our next quarter."

Debney continued, "Despite the persistent short-term headwinds, our long-term strategy remains focused on growth, both organic and inorganic, within our core firearm business. After the close of the second quarter, we made two announcements in support of our strategy. First, we have partnered with General Dynamics Ordnance and Tactical Systems to pursue replacement of the U.S. Army's standard sidearm with our M&P polymer pistol. Second, we signed an agreement to acquire Battenfeld Technologies, Inc. (BTI), a leading provider of hunting and shooting accessories. This accretive acquisition represents an acceleration of our stated objective to expand our firearm accessories business. BTI is a profitable company with a history of strong organic growth and can serve as a broad platform for the expansion of our combined firearm accessories businesses. Given the solid management team and infrastructure in place at BTI, we believe a focused effort on organic and inorganic growth in the highly fragmented accessories market could deliver long-term double digit compounded annual growth in that segment."

Smith & Wesson sees Q3 2015 EPS of $0.09-$0.11, versus the consensus of $0.2. Smith & Wesson sees Q3 2015 revenue of $113-118 million, versus the consensus of $129.9 million.

Smith & Wesson sees FY2015 EPS of $0.66-$0.70, versus the consensus of $0.89. Smith & Wesson sees FY2015 revenue of $504-508 million, versus the consensus of $530.4 million.

*** Both sets of guidance exclude the impact of the BTI acquisition

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