Sturm, Ruger & Co.
The 10-second takeaway
For the quarter ended March 31 (Q1), Sturm, Ruger & Co. beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Sturm, Ruger & Co. booked revenue of $110.8 million. The one analyst polled by S&P Capital IQ expected to see sales of $101.7 million on the same basis. GAAP-reported sales were 49% higher than the prior-year quarter's $75.4 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 $0.79. The two earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.79 for Q1 were 88% higher than the prior-year quarter's $0.42 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 37.2%, 540 basis points better than the prior-year quarter. Operating margin was 21.7%, 520 basis points better than the prior-year quarter. Net margin was 13.8%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $91.5 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $379.5 million. The average EPS estimate is $2.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 461 members rating the stock outperform and 30 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Sturm, Ruger & Co. a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sturm, Ruger & Co. is outperform, with an average price target of $53.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.