Sturm, Ruger Earnings Soar, but Stock Is Stuck

Shares of Southport, Conn.-based Sturm, Ruger (NYSE: RGR  ) rose modestly during daytime trading Tuesday, and then continued to drift upwards in the after-hours market after the company reported Q3 earnings.

Sturm's earnings report, however, was much stronger than investors appeared to give it credit for. Earnings for the quarter came in at $1.44 per share, well ahead of the $1.21 per share that Wall Street had been expecting. Similarly, Sturm's $170.9 million in revenues for the quarter trumped expectations for just $154.3 million in revenues.

Sturm's unit sales for the quarter were up 31% year over year. Sales by dollar value grew 44.5% in comparison to Q3 2012. Profits grew even more strongly, improving by more than 63.6%.

Importantly, Sturm CEO Michael O. Fifer noted that Sturm's performance was superior to what appears to have taken plane elsewhere in the guns industry, where National Instant Criminal Background Check System data shows that gun purchases in the U.S. so far this year have grown about 22% in comparison with sales levels at this time, last year. Sturm's unit-sales, in contrast, are up 26% year to date, and were up the aforementioned 31% in Q3.

New product introductions such as Sturm's LC380 pistol, SR45 pistol, and Ruger American Rimfire rifle may have contributed to the company's taking market share from other gun manufacturers.


Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 05, 2013, at 7:04 PM, Rcaptain wrote:

    Your kidding with that head line correct? If not have you been even watching this stock? Look at how much this is up in just the last 2 months. Not sure how you can infer the stock is stuck since nothing in your article backs that up.

  • Report this Comment On November 05, 2013, at 10:51 PM, TMFDitty wrote:

    "Stuck" in the sense that the earnings news was good, but failed to move the stock price much in after-hours trading.

  • Report this Comment On November 05, 2013, at 11:59 PM, aleax wrote:

    @TMFDitty, WS's `expectations` obviously weren't investors' -- the stock's +28% over the last 3 months clearly shows the market _was_ expecting great results, no?! The +1.35% after hours (to an all-time high) shows the results were even (slightly) better than those optimistic expectations by `the market`!-)

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2713989, ~/Articles/ArticleHandler.aspx, 8/30/2014 4:32:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement