Despite the debates in Washington D.C. the firearms business is still rising. Smith & Wesson shares went up to 6% in after-hours trading Tuesday following a strong quarterly earning from the gun maker. Smith & Wesson handgun sales went up 27% versus a year ago.
Gun sales have surged since the reelection of President Barack Obama because of the concerns of gun regulations, and mass shootings. Smith & Wesson gun sales earlier this year was off the charts. They were unable to keep up with the demand despite increasing production. Guns were flying off the shelves.
Guns stocks have remained to be very popular for investors in the past few months. Smith & Wesson shares are up 44% on the year, while fellow gun maker Sturm Ruger is up nearly 60%.
Smith & Wesson had a little help on the rise by a $100 million stock buyback completed earlier this year. They authorized an additional buyback of $15 million. Smith & Wesson net sales for three months ending on October 31 were $139 million. They made $58 million in profits.
Earlier this year, Lawmakers had a debate to strengthen gun control laws, however the Senate failed to pass legislation that would have expanded background checks and banned some semi-automatic weapons.