Smith & Wesson Brands Inc (NASDAQ:SWBI) stock surges 18.37% (As on June 23, 12:48:22 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23 and raises dividend. Non-GAAP net income was $14.6 million, compared with $37.6 million, for the comparable quarter last year. Non-GAAP Adjusted EBITDAS was $30.3 million, or 20.9% of net sales, compared with $57.7 million, or 31.8% of net sales, for the comparable quarter last year. Gross margin was 29.0% compared with 39.8% in the comparable quarter last year. Fiscal 2023 ended with a very solid fourth quarter as the headwinds the compan faced from elevated channel inventory throughout the first half of the fiscal year abated. Focused consumer promotions in the second half were successful in driving retail and distributor inventories down significantly and the compan are now at or below targeted levels with every major customer. And most importantly, the retail market share data indicates that the company has maintained the leadership position at the sales counter with the firearm consumer

SWBI in the fourth quarter of FY 23 has reported the adjusted earnings per share of 32 cents, beating the analysts’ estimates for the adjusted earnings per share of 29 cents. The company had reported 20.1 percent fall in the adjusted revenue to $144.8 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $138.38 million.

The company raised its quarterly dividend by 20% to $0.12 per share, or $0.48 annualized, for an annual yield on the dividend of 4.3%.

For fiscal 2024, the company expects consumer demand to resemble demand in fiscal 2023; however, the company anticipates an increase in the shipments given the significant decline in inventory in the distribution channel that the company experienced during the first half of last fiscal year.

Meanwhile, the company has entered into an amendment among the Company, certain of the Company’s subsidiaries, certain Guarantors party thereto, certain lenders party thereto, and TD Bank, N.A., as administrative agent and Swingline Lender, to that certain Amended and Restated Credit Agreement, dated August 24, 2020, among the Company, certain of its direct and indirect Domestic Subsidiaries, certain lenders, TD Bank, N.A., as administrative agent, TD Securities (USA) LLC and Regions Bank, as joint lead arrangers and joint bookrunners, and Regions Bank, as syndication agent (the “Credit Agreement” and, as the Credit Agreement is amended by the Amendment, the “Amended Credit Agreement”).