Smith & Wesson announced its Q1 2017 results on Thursday, showing more than a 40% increase in net sales – to $207 million – when compared to Q1 2016. Not bad considering the quarter is typically a down one compared to the hunting and holiday seasons.

Between the financial highlights press release and the earnings call, I was able to discern the following information…

Modular Handgun System Competition – Smith & Wesson remains in the MHS competition, but does not anticipate the US military making any substantive announcements before the early part of 2017 (calendar year.) According to multiple sources, there are a dozen pistols in consideration for the military contract, with the M&P pistol being one of those. As I have reported elsewhere, the M&P submitted appears to be a second generation pistol that we can expect to see hit the commercial market at some point.

Handguns…and More Handguns – Smith & Wesson sells a number of AR-style rifles, plus owns the Thompson/Center brand of bolt action rifles. Even so, the company still generates some 80% of its sales in the handgun market. This may be reflective of consumer association of the S&W name to handguns, or could may also suggest where the market is investing its money. The company’s M&P Shield line is certainly popular for concealed carry, an activity that has been shown to be a driving reason for many people when buying their first firearm.

Rugged Outdoor Market – During the earnings call, Smith & Wesson execs used this term multiple times. In fact, it kind of seemed like a talking point. I anticipate that S&W will try to capitalize on this term both with existing non-firearm brands it owns and with future acquisitions.

ElectroOptics Division – Taking a page from the SIG SAUER playbook, Smith & Wesson now has an Electro Optics Division. The company formed the division when it acquired Crimson Trace, but it will not be limited to lasers. In fact, the company was very clear that the division would develop products for the entirety of the sight and optical market. While Crimson Trace is the base, the company sees “ample expansion opportunities.”

New Products – True to form, the company declined to offer any insight into what new products it will introduce in the coming months. It was stated that new products would be shown at the next SHOT Show, but no further insight was offered.

Disclaimer: Smith & Wesson is a publicly traded company (NASDAQ: SWHC). I have no financial interest in Smith & Wesson or any other firearms or outdoor company. Nothing in this article should be considered investment advice, nor do I claim any financial expertise. In fact, it is best to assume I am a financial moron, and nothing I say should be trusted.