Smith & Wesson Brands (SWBI) will report second quarter earnings tonight after the close.

Q2 Capital IQ consensus calls for EPS of $0.63 (versus $0.09 last year) on revenue of $223.0 mln (+45% yr/yr).

Gun sales have been surging during the pandemic.

The FBI reported NICS background checks for August were up 32% yr/yr, September were up 31% yr/yr, and October were up 38% yr/yr.

TECHS:

SWBI has a $880 mln valuation and trades at ~6x FY21 EPS estimates.

Based on the weekly SWBI Weekly Dec04 $16 straddle, the options market is currently pricing in a move of ~9% in either direction by Friday.

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