The 10-second takeaway
For the quarter ended June 30 (Q2), 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.
Margins increased across the board.
Sturm, Ruger logged revenue of $119.6 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $107.0 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $79.6 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 $0.91. The three earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.91 for Q2 were 63% 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 37.7%, 190 basis points better than the prior-year quarter. Operating margin was 23.7%, 230 basis points better than the prior-year quarter. Net margin was 15.1%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $96.7 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $420.6 million. The average EPS estimate is $2.98.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 490 members out of 521 rating the stock outperform, and 31 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 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 $60.00.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Sturm, Ruger. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Sturm, Ruger to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.
More from The Motley Fool
How to Invest in Gun Stocks
The firearms industry can be a complicated sector for investors, and not just because the catalysts that move gun sales can seem counter-intuitive.
Will 2018 Be Sturm Ruger & Company Inc.'s Best Year Yet?
It might be another hard year ahead for the gun industry.
Gun Stocks: What to Watch in 2018
A friendly political environment for gun advocates is bad news for gun stocks in 2018.