Gun sales growth in the US, as Obama opens control plans

Jerry Kunzer looks at Smith & Wesson display during the NRA annual meeting and exhibition April 14, 2012 in America's Center in St. Louis, MissouriImage copyrightGetty Images
Image captionThe right to bear arms is enshrined in the Constitution of the United States
Arms sales in the US are rising, as well as President Barack Obama is the control measures aimed at limiting the availability of weapons.

Shares gunsmith Smith & Wesson rose to its highest level since 1999, ahead of President ad.

On Monday, Smith & Wesson raised its sales forecast, saying that the market was "stronger than originally anticipated."

Number of checks on potential buyers - a guide to future sales - has also increased.

National Instant Criminal Background Check System says that checks increased by about 38% last month compared to December 2014.

Smith & Wesson brand update says that ended January 31, expected sales of around $ 175m- $ 180m in the three months. Earlier, the management put the likely figure of between $ 150m and $ 155m.

The company said that the "sell-through of its products in the distribution has been stronger than originally anticipated, which led to a reduction in stocks of the distributor of his firearm." This means that the weapons are bought faster than Smith & Wesson delivers them.

The company said its net income was $ 14.2m (£ 9.46m) for the period, compared to $ 5.2m for the same period last year.

In December, the company said profit was nearly tripled in the three months to October, while net sales increased by 38% over the past five years.

A graph showing the number of inspections carried out by the FBI in December 2007 to December 2015
On Monday, the White House has presented proposals for measures to control firearms, which require more sellers to obtain licenses and more buyers gun to be tested.

According to the US Bureau of Alcohol, Tobacco, Firearms and Explosives will require that people who sell guns in stores, at gun shows or via the Internet to obtain a license and carrying out checks,

The Bureau is also finalizing a rule requiring verification data for dangerous weapons buyers from the trust, corporation or other legal entity. President Obama needs to disclose more details about the plans on Tuesday.

The President said that he will curb gun violence and unregulated sales after a series of mass executions that included an attack last month in San Bernardino, California, that killed 14 people.

James Hardiman, an analyst at Wedbush Securities, said that the increase in sales volume the gun was probably because of the buyers, who fear tighter controls.

News of a strong market saw the gun Smith & Wesson shares up to 11% on Tuesday, despite the equity markets as a whole is significantly reduced. Share Competitor Sturm Ruger rose 7.28% to a 52-week high.

Buying a firearm

arms sales to Smith & Wesson after principal photography

48%

increase in sales year on year in August-October 2012, after shooting a Sikh Temple of Wisconsin

38.8% higher than after the Sandy Hook (December 2012)
12.1% more than the following Charleston (June 2015)
$ 180m projected sales in November 2015 and January 2016, an increase of 38.5%
Smith & Wesson