Sturm, Ruger & Company, Inc. (NYSE:RGR) Announces Earnings Results, Misses Expectations By $0.07 EPS

Sturm, Ruger & Company, Inc. (NYSE:RGR) announced its earnings results on Wednesday. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.07), FiscalAI reports. The firm had revenue of $141.36 million during the quarter, compared to analyst estimates of $137.26 million. Sturm, Ruger & Company, Inc. had a negative net margin of 0.80% and a positive return on equity of 6.93%. The firm’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.46 EPS.

Here are the key takeaways from Sturm, Ruger & Company, Inc.’s conference call:

• Andrew Wieland was appointed SVP & Chief Financial Officer following Tom Dineen’s planned transition, a leadership change the company says will support execution of its long-term plan.
• Strategic cooperation agreement with Beretta Holding was reached, avoiding a proxy contest, bringing a large industry shareholder and creating stability to focus on growth.
• Net sales increased 4% to $141M; GAAP diluted EPS was $0.01, while adjusted diluted EPS was $0.27 after excluding strategic and organizational one‑time expenses.
• Demand momentum: units ordered rose 28% to 525,000, backlog grew 20% to $330M, and new products accounted for 41% of firearm sales this quarter.
• The quarter included about $7.4M of one-time charges (Beretta agreement, reduction in force, retention awards) and weather-related production disruptions that reduced output by ~30,000 units.

Sturm, Ruger & Company, Inc. Trading Down 2.4%

RGR stock opened at $40.76 on Thursday. The firm has a market capitalization of $650.01 million, a PE ratio of -145.56 and a beta of 0.21. Sturm, Ruger & Company, Inc. has a 1-year low of $28.33 and a 1-year high of $48.21. The business’s 50 day simple moving average is $40.34 and its 200 day simple moving average is $37.43.

Sturm, Ruger & Company, Inc. Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Thursday, May 14th will be issued a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Thursday, May 14th. This is a boost from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.08. Sturm, Ruger & Company, Inc.’s payout ratio is presently -157.14%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. acquired a new position in Sturm, Ruger & Company, Inc. in the 4th quarter valued at $147,000. Intech Investment Management LLC grew its holdings in Sturm, Ruger & Company, Inc. by 10.5% in the 4th quarter. Intech Investment Management LLC now owns 6,915 shares of the company’s stock valued at $226,000 after buying an additional 655 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in Sturm, Ruger & Company, Inc. in the 3rd quarter valued at $265,000. Brevan Howard Capital Management LP grew its holdings in Sturm, Ruger & Company, Inc. by 8.4% in the 2nd quarter. Brevan Howard Capital Management LP now owns 8,028 shares of the company’s stock valued at $288,000 after buying an additional 620 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its holdings in Sturm, Ruger & Company, Inc. by 5.2% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 6,002 shares of the company’s stock valued at $215,000 after buying an additional 299 shares in the last quarter. 64.00% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have weighed in on RGR. Zacks Research raised Sturm, Ruger & Company, Inc. from a “strong sell” rating to a “hold” rating in a research report on Monday. Lake Street Capital boosted their price target on Sturm, Ruger & Company, Inc. from $41.00 to $43.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Sturm, Ruger & Company, Inc. in a research report on Friday, March 27th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Sturm, Ruger & Company, Inc. has an average rating of “Hold” and a consensus price target of $43.00.

Sturm, Ruger & Company, Inc. Company Profile

Sturm, Ruger & Company, Inc, founded in 1949 by William B. Ruger and Alexander McCormick Sturm, is a leading American designer and manufacturer of firearms. Headquartered in Newport, New Hampshire, the company has established a reputation for precision engineering and durable products. Its manufacturing footprint includes facilities in Newport and Mayodan, North Carolina, where it maintains a vertically integrated production model spanning metallurgy, machining, and assembly.

The company’s product portfolio encompasses a broad range of small arms, including centerfire and rimfire rifles, shotguns, semi-automatic pistols, revolvers, and accessories.