The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sturm, Ruger beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Sturm, Ruger chalked up revenue of $141.8 million. The one analyst polled by S&P Capital IQ foresaw revenue of $119.0 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $93.2 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 $1.00. The three earnings estimates compiled by S&P Capital IQ predicted $0.82 per share. Non-GAAP EPS of $1.00 for Q4 were 85% higher than the prior-year quarter's $0.54 per share. GAAP EPS of $1.02 for Q4 were 89% higher than the prior-year quarter's $0.54 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 34.9%, 170 basis points better than the prior-year quarter. Operating margin was 21.9%, 400 basis points better than the prior-year quarter. Net margin was 14.0%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $124.0 million. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $494.0 million. The average EPS estimate is $3.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 621 members out of 659 rating the stock outperform, and 38 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Sturm, Ruger a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sturm, Ruger is hold, with an average price target of $50.00.
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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. The Motley Fool owns shares of Sturm, Ruger & Company. 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.