Sturm, Ruger & Company, Inc. (NYSE:RGR) Posts Quarterly Earnings Results

Sturm, Ruger & Company, Inc. (NYSE:RGR) posted its quarterly earnings results on Wednesday. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.07, FiscalAI reports. Sturm, Ruger & Company, Inc. had a return on equity of 8.02% and a net margin of 2.74%. The firm had revenue of $147.63 million for the quarter, compared to analyst estimates of $131.03 million. During the same quarter in the previous year, the firm earned $0.10 EPS. The business’s quarterly revenue was up 16.5% on a year-over-year basis.

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

• Sales and profitability improved: Third-quarter net sales rose 17% year over year to $148 million, adjusted EBITDA increased to $14 million from $3 million, and adjusted diluted earnings per share climbed to $0.44 from $0.10.
• Higher production and solid channel conditions: Management said output reached a near-term record, supported by increased capacity, production focus, and improved planning. It described distributor inventories as healthy, consumer demand as satisfactory, and backlog as healthy heading into the holiday season.
• Some product families are being paused: The company said suspended or phased-out products account for about 4% of units and roughly $25 million in revenue, while generating minimal to no profit. Management framed the moves as temporary suspensions where appropriate, but acknowledged some customer dissatisfaction.
• Ruger is redirecting resources toward growth: Management said portfolio simplification is intended to free capacity for more profitable products and innovation, with numerous new models expected in the coming months and launches planned around SHOT Show.
• Strong balance sheet supports investment: Ruger ended the quarter with $101 million in cash and short-term investments, no debt, and a 3-to-1 current ratio. It generated $24 million of operating cash in the first nine months and expects about $30 million in capital expenditures for 2026.

Sturm, Ruger & Company, Inc. Trading Up 2.5%

Shares of RGR traded up $1.24 during mid-day trading on Friday, reaching $50.74. The company’s stock had a trading volume of 360,615 shares, compared to its average volume of 209,702. Sturm, Ruger & Company, Inc. has a 1-year low of $28.33 and a 1-year high of $51.42. The stock has a market cap of $810.72 million, a P/E ratio of 50.24 and a beta of 0.11. The business has a 50-day simple moving average of $42.50 and a two-hundred day simple moving average of $39.87.

Sturm, Ruger & Company, Inc. Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 20th will be paid a $0.18 dividend. This is a negative change from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.21. This represents a $0.72 annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, November 20th. Sturm, Ruger & Company, Inc.’s dividend payout ratio is currently 83.17%.

Analyst Upgrades and Downgrades

RGR has been the subject of several analyst reports. Wall Street Zen raised shares of Sturm, Ruger & Company, Inc. from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 1st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sturm, Ruger & Company, Inc. in a research report on Friday, October 30th. Finally, Zacks Research upgraded shares of Sturm, Ruger & Company, Inc. from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Sturm, Ruger & Company, Inc. presently has a consensus rating of “Hold” and a consensus price target of $46.00.

Insiders Place Their Bets

In other news, VP Michael Wilson sold 628 shares of the stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $45.47, for a total value of $28,555.16. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,828 shares of company stock valued at $77,725. 4.60% of the stock is currently owned by corporate insiders.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company, Inc designs, manufactures, and sells firearms for the commercial sporting market. Its product portfolio includes pistols, revolvers, rifles, and related accessories marketed under the Ruger brand. The company serves customers through independent distributors, retailers, and other firearms dealers.

Founded in 1949 by William B. Ruger and Alexander M. Sturm, the company is one of the largest firearms manufacturers in the United States. Its products are manufactured in the U.S.