Smith & Wesson Holding Corp, a leading firearms maker, has said that it expects its sales to increase 38 per cent to $179 million during the fourth quarter of the financial year 2012-2013.

The company also said that it expects its net income from continuing operations to rise to $0.44 per share during the fourth quarter form January to March, 2013 compared to $0.27 per share recorded in the previous year. Analysts had predicted in a poll by Thomson Reuters that the company is expected to record earnings of $0.40 per share on revenues of $170.7.

The company has said that it is planning to buy back up to $100 million of its shares, including $75 million that would be purchased through a fixed-price tender offer. Stockholders will be offered $10.00 per share, which is 7.5 per cent premium to Thursday's closing price. The company said that the buyback programme would reduce the number of outstanding shares by 15 per cent.

The shares of the company rose 2.31 per cent at $9.30 on Thursday. The company said that the share volume was recorded at 1.5 million shares on the Nasdaq.