Smith and Wesson Posts a Healthy Profit

I just read that Smith and Wesson's profits have increased. This is good to hear, because just a few years ago the gun haters were trying to sue the gun manufacturing industry out of existence.

On a day when most stocks nose-dived, gun manufacturer Smith & Wesson (nasdaq: SWHC - news - people ) shot up 5.09%, or $1.02, to $21.06 on Friday.
On Thursday, the company reported record earnings of $74.4 million for the quarter ending July 31, and raised its guidance for the remainder of the 2007 fiscal year. Analysts attributed the gun maker's recent success to its product line expansion.
“Smith & Wesson has done a phenomenal job moving beyond the handgun market to include long guns like rifles,” said Eric Wold of Merriman Curhan Ford & Co.
It gained traction in the market through its January purchase of Thomson/Center Arms, a New Hampshire-based hunting rifle company. According to James Maher of ThinkEquity Partners, sales of Thompson/Center products have increased 22% in each of the two quarters since the acquisition was completed. Prior to its purchase by Smith & Wesson, Thomson/Center Arms’ sales were rising quarterly in the single digit percentages. “The union of Smith & Wesson and Thomson/Center Arms was mutually beneficial,” said Maher. “The company is performing extremely well with both revenue and earnings exceeding expectations.”

I didn't know that S&W had purchased Thompson/Center. That was definitely a smart move. I have been wanting to purchase one of TC's .410 handguns.