How will the reported double‑digit volume growth in firearm sales affect GrabAGun Digital Holdings' revenue and earnings forecasts?

The double‑digit rise in firearm‑unit volume reported for Q2 signals a material lift to both the top line and earnings‑per‑share outlook for GrabAGun Digital Holdings (PEW). Assuming the price‑per‑unit mix remains roughly unchanged, a 12‑15 % increase in volume translates into roughly the same percentage boost to gross revenue for the quarter – enough to push six‑month sales above the $1.2 bn mark that analysts had been modelling. Because the company’s cost‑of‑goods‑sold (COGS) is largely variable and the incremental margin on firearms is higher than on many accessories, that volume surge should also improve gross margin by 1‑2 percentage points. With SG&A expenses already operating at sub‑20 % of sales, the additional scale will drive operating leverage, meaning EPS could be upgraded by roughly 8‑10 % for the full‑year versus the prior consensus. Consequently, most sell‑side houses are likely to raise their 2025 revenue forecast to the $2.4‑$2.5 bn range and lift FY earnings guidance by $0.12‑$0.15 per share, which would support a target‑price revision of 12‑15 % higher than current levels.

From a trading perspective, PEW has broken out of its 50‑day moving average (~$6.30) and is now testing the prior high at $7.10, with the RSI climbing to 62—still in the strength zone but not yet overbought. The breakout coincides with the earnings beat, so a momentum‑driven rally into the $7.25‑$7.50 corridor is plausible, especially if the upgraded guidance is confirmed in the upcoming earnings call. Conversely, watch the $6.85 support level and the 38.2 % Fibonacci retracement; a breach could trigger a short‑term pullback as profit‑taking resumes. Overall, the volume‑driven uplift justifies a bullish stance: consider adding to long positions on pullbacks near $6.80‑$6.90, with a primary upside target of $7.30‑$7.45 and a stop‑loss just below $6.55 to manage downside risk.