Sportsman’s Warehouse (SPWH) has popped more than 19% today on heavy trading volume after the company reported second-quarter earnings results after the close Thursday. The company easily beat analysts’ expectations, reporting earnings of $0.12 per share, $0.02 higher than the $0.10 per share estimates. Additionally, SPWH reported a 2.3% increase in net sales, once again beating expectations with $159.5 million versus the $155.77 million consensus. According to management, the solid results are thanks in part to strong results from its non-hunting categories as well as robust performance from new stores.

I was pleased by the results and the burst of momentum has helped our retained position in the name regain some ground. We’ve already seen that this stock can soar in a matter of weeks, and those who were able to get in early have already booked close to 20% here. With new life in the shares, continue to hold SPWH for further upside.

Sincerely,

Hilary Kramer
Editor, Inner Circle