The 10-second takeaway
For the quarter ended March 30 (Q1), Sturm, Ruger beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Sturm, Ruger chalked up revenue of $155.9 million. The two analysts polled by S&P Capital IQ predicted revenue of $131.7 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $112.3 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 $1.20. The three earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. GAAP EPS of $1.20 for Q1 were 52% higher than the prior-year quarter's $0.79 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 39.3%, 210 basis points better than the prior-year quarter. Operating margin was 23.8%, 210 basis points better than the prior-year quarter. Net margin was 15.2%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $125.9 million. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $513.9 million. The average EPS estimate is $3.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 618 members out of 657 rating the stock outperform, and 39 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Sturm, Ruger a green thumbs-up, and five 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.