* Sturm Ruger, Smith & Wesson to report quarterly results
* Gun sales strong as buyers rush to beat gun-control proposals
* Some investors cool after Newtown shootings
By Arpita Mukherjee and Siddharth Cavale
“Feb 25 (Reuters) – U.S. gun makers are aiming for record quarterly sales as first-time buyers, including a growing number of women and pensioners, rush to buy weapons before anticipated gun-control laws come into force.
President Barack Obama’s proposals to curb gun violence in the United States, including enhanced background checks and a ban on military-style assault weapons, have increased political and investor scrutiny on gun companies accustomed to growth.
But Smith & Wesson Corp and Sturm Ruger Inc , which will report quarterly results within the next two weeks, brushed off negative sentiment after the Newtown, Connecticut school shootings on Dec. 14. Shares recovered and sales never stopped.
“The firearms industry is certainly seeing explosive sales growth in the last several months,” Wedbush Securities analyst Rommel Dionisio told Reuters.
Background checks for firearm sales, mandatory for all purchases made at U.S. gun stores, rose nearly 50 percent year-on-year in December, data from the FBI’s National Instant Criminal Background Check System showed.
This was the highest monthly percentage rise ever reported for a measurement commonly used to gauge the firearm industry’s performance. It eclipsed the 30.8 percent rise of November 2012….”Comments »