Sturm, Ruger & Company, Inc. (NYSE:RGR) Releases 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 for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.07), FiscalAI reports. Sturm, Ruger & Company, Inc. had a negative net margin of 2.18% and a positive return on equity of 5.95%. The company had revenue of $141.36 million for the quarter, compared to the consensus estimate of $137.26 million. During the same period in the previous year, the firm posted $0.46 EPS. The company’s revenue for the quarter was up 4.1% on a year-over-year basis.

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 Up 0.2%

Sturm, Ruger & Company, Inc. stock traded up $0.08 during mid-day trading on Friday, hitting $39.22. The company had a trading volume of 17,825 shares, compared to its average volume of 172,762. Sturm, Ruger & Company, Inc. has a 12 month low of $28.33 and a 12 month high of $48.21. The company has a market capitalization of $625.56 million, a PE ratio of -54.39 and a beta of 0.21. The stock’s 50 day moving average price is $40.38 and its two-hundred day moving average price is $37.39.

Sturm, Ruger & Company, Inc. Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Thursday, May 14th will be issued a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 1.1%. This is a positive change from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.08. The ex-dividend date of this dividend is Thursday, May 14th. Sturm, Ruger & Company, Inc.’s dividend payout ratio is presently -114.29%.

Wall Street Analysts Forecast Growth

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 reissued a “buy” rating and issued a $46.00 target price on shares of Sturm, Ruger & Company, Inc. in a research report on Thursday. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Sturm, Ruger & Company, Inc. in a research note on Friday, March 27th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $46.00.

Hedge Funds Weigh In On Sturm, Ruger & Company, Inc.

Large investors have recently modified their holdings of the stock. Pacer Advisors Inc. boosted its stake in Sturm, Ruger & Company, Inc. by 10.5% in the 4th quarter. Pacer Advisors Inc. now owns 50,932 shares of the company’s stock worth $1,663,000 after purchasing an additional 4,841 shares in the last quarter. Wellington Management Group LLP increased its stake in Sturm, Ruger & Company, Inc. by 0.8% during the 4th quarter. Wellington Management Group LLP now owns 496,315 shares of the company’s stock valued at $16,205,000 after purchasing an additional 3,886 shares in the last quarter. Millennium Management LLC purchased a new position in Sturm, Ruger & Company, Inc. in the fourth quarter worth about $9,486,000. Balyasny Asset Management L.P. lifted its stake in shares of Sturm, Ruger & Company, Inc. by 310.6% in the fourth quarter. Balyasny Asset Management L.P. now owns 53,010 shares of the company’s stock worth $1,731,000 after buying an additional 40,099 shares in the last quarter. Finally, Sandia Investment Management LP bought a new position in shares of Sturm, Ruger & Company, Inc. in the fourth quarter worth approximately $865,000. Hedge funds and other institutional investors own 64.00% of the company’s stock.

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.