Sturm, Ruger & Company, Inc. (NYSE:RGR) Issues Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Ruger beat quarterly expectations: EPS was $0.44 versus the $0.37 consensus, while revenue of $147.6 million exceeded estimates of $131.0 million and rose 16.5% year over year.
• Production and channel conditions improved: Management cited near-record output, healthy distributor inventories, satisfactory consumer demand, and a healthy backlog heading into the holiday season.
• The company is streamlining its product lineup: Suspended or phased-out products represent about 4% of units and $25 million in revenue but contribute minimal to no profit; Ruger plans to redirect capacity toward more profitable products and innovation.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.37 by $0.07, FiscalAI reports. The company had revenue of $147.63 million during the quarter, compared to analyst estimates of $131.03 million. Sturm, Ruger & Company, Inc. had a net margin of 2.11% and a return on equity of 6.58%. The firm's revenue was up 16.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.10 EPS.

Here are the key takeaways from Sturm, Ruger & Company, Inc.'s conference call:

• Sales and profitability improved: Third-quarter net sales rose 17% year over year to $148 million, adjusted EBITDA increased to $14 million from $3 million, and adjusted diluted earnings per share climbed to $0.44 from $0.10.
• Higher production and solid channel conditions: Management said output reached a near-term record, supported by increased capacity, production focus, and improved planning. It described distributor inventories as healthy, consumer demand as satisfactory, and backlog as healthy heading into the holiday season.
• Some product families are being paused: The company said suspended or phased-out products account for about 4% of units and roughly $25 million in revenue, while generating minimal to no profit. Management framed the moves as temporary suspensions where appropriate, but acknowledged some customer dissatisfaction.
• Ruger is redirecting resources toward growth: Management said portfolio simplification is intended to free capacity for more profitable products and innovation, with numerous new models expected in the coming months and launches planned around SHOT Show.
• Strong balance sheet supports investment: Ruger ended the quarter with $101 million in cash and short-term investments, no debt, and a 3-to-1 current ratio. It generated $24 million of operating cash in the first nine months and expects about $30 million in capital expenditures for 2026.

Sturm, Ruger & Company, Inc. Stock Performance

Shares of RGR traded up $5.03 during trading hours on Wednesday, hitting $50.15. 599,423 shares of the stock were exchanged, compared to its average volume of 623,995. Sturm, Ruger & Company, Inc. has a 12-month low of $28.33 and a 12-month high of $50.84. The company has a market cap of $801.46 million, a price-to-earnings ratio of 39.24 and a beta of 0.11. The stock's 50-day moving average price is $42.27 and its two-hundred day moving average price is $39.81.

Insider Buying and Selling

In other Sturm, Ruger & Company, Inc. news, VP Michael Wilson sold 628 shares of the firm's stock in a transaction on Monday, October 26th. The stock was sold at an average price of $45.47, for a total value of $28,555.16. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 1,828 shares of company stock valued at $77,725. 4.60% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on RGR. Zacks Research upgraded shares of Sturm, Ruger & Company, Inc. from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings reissued a "hold (c)" rating on shares of Sturm, Ruger & Company, Inc. in a research note on Friday, October 30th. Finally, Wall Street Zen upgraded shares of Sturm, Ruger & Company, Inc. from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $46.00.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company, Inc designs, manufactures, and sells firearms for the commercial sporting market. Its product portfolio includes pistols, revolvers, rifles, and related accessories marketed under the Ruger brand. The company serves customers through independent distributors, retailers, and other firearms dealers.

Founded in 1949 by William B. Ruger and Alexander M. Sturm, the company is one of the largest firearms manufacturers in the United States. Its products are manufactured in the U.S.

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