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The attached chart of Smith & Wesson REVENUES needs no comment. (Chart from Zerohedge.)

Want to talk about a high margin business? The official sponsor of the gold rush of 1849, Smith & Wesson  (NYS: SWHC)  just reported an absolutely explosive quarter.

Revenues shot up over 48% to a record $136 million. Gross sales margins were nearly 38% due to increased volume on highly profitable lines and solid relationships with suppliers. From a year ago, net income went from $2.3 million to $18.9 million. Apparently, people spent the last quarter preparing their arsenals for… well, people were preparing their arsenals.

Very few businesses can gauge their product demand by consulting the FBI, but gun companies can. The sharp increases in revenue and unit sales are directly tied to a sharp increase in FBI background checks.

The company had a $392 million backlog at the end of July, and 2013 guidance was increased, so don’t think this gun-slinging corporation is done taking names quite yet.

SMITH & WESSON STOCK REPORT

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