The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Sturm, Ruger beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins increased, net margins expanded.
Sturm, Ruger booked revenue of $118.2 million. The two analysts polled by S&P Capital IQ hoped for revenue of $112.1 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $80.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.88. The three earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.88 for Q3 were 57% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.0%, 20 basis points worse than the prior-year quarter. Operating margin was 23.1%, 210 basis points better than the prior-year quarter. Net margin was 14.7%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $113.0 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $457.1 million. The average EPS estimate is $3.18.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 514 members out of 547 rating the stock outperform, and 33 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Sturm, Ruger a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sturm, Ruger is outperform, with an average price target of $53.33.
Can your retirement portfolio provide you with enough income to last? You'll need more than Sturm, Ruger. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Sturm, Ruger to My Watchlist.