Sturm, Ruger & Company, Inc. (NYSE:RGR) Posts Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• Sturm, Ruger reported adjusted EPS of $0.27, missing analyst expectations of $0.34 by $0.07, while revenue beat at $141.36 million and GAAP diluted EPS was $0.01.
• Management appointed Andrew Wieland as SVP & Chief Financial Officer and reached a strategic cooperation agreement with Beretta Holding, avoiding a proxy contest and aiming to provide stability for long‑term execution.
• Demand momentum was strong—units ordered rose 28% to 525,000 and backlog grew 20% to $330M—but the quarter included about $7.4M of one‑time charges and weather disruptions (~30,000 units); the company also raised its quarterly dividend to $0.11.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.27 earnings per share for the quarter, missing analysts' consensus estimates of $0.34 by ($0.07), FiscalAI reports. The business had revenue of $141.36 million during the quarter, compared to analyst estimates of $137.26 million. Sturm, Ruger & Company, Inc. had a negative net margin of 0.80% and a positive return on equity of 6.93%.

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

• Andrew Wieland was appointed SVP & Chief Financial Officer following Tom Dineen's planned transition, a leadership change the company says will support execution of its long-term plan.
• Strategic cooperation agreement with Beretta Holding was reached, avoiding a proxy contest, bringing a large industry shareholder and creating stability to focus on growth.
• Net sales increased 4% to $141M; GAAP diluted EPS was $0.01, while adjusted diluted EPS was $0.27 after excluding strategic and organizational one‑time expenses.
• Demand momentum: units ordered rose 28% to 525,000, backlog grew 20% to $330M, and new products accounted for 41% of firearm sales this quarter.
• The quarter included about $7.4M of one-time charges (Beretta agreement, reduction in force, retention awards) and weather-related production disruptions that reduced output by ~30,000 units.

Sturm, Ruger & Company, Inc. Stock Down 2.4%

NYSE RGR traded down $1.01 on Wednesday, hitting $40.76. 138,467 shares of the stock were exchanged, compared to its average volume of 173,772. Sturm, Ruger & Company, Inc. has a fifty-two week low of $28.33 and a fifty-two week high of $48.21. The company has a market cap of $650.09 million, a PE ratio of -145.56 and a beta of 0.21. The company has a 50-day moving average price of $40.34 and a 200-day moving average price of $37.43.

Sturm, Ruger & Company, Inc. Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Thursday, May 14th will be issued a dividend of $0.11 per share. This is a boost from Sturm, Ruger & Company, Inc.'s previous quarterly dividend of $0.08. The ex-dividend date is Thursday, May 14th. This represents a $0.44 annualized dividend and a yield of 1.1%. Sturm, Ruger & Company, Inc.'s dividend payout ratio (DPR) is presently -114.29%.

Institutional Trading of Sturm, Ruger & Company, Inc.

Several institutional investors have recently modified their holdings of RGR. AQR Capital Management LLC lifted its position in shares of Sturm, Ruger & Company, Inc. by 239.4% during the 1st quarter. AQR Capital Management LLC now owns 100,834 shares of the company's stock worth $3,962,000 after buying an additional 71,128 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Sturm, Ruger & Company, Inc. by 4.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,777 shares of the company's stock worth $384,000 after buying an additional 390 shares during the last quarter. JPMorgan Chase & Co. lifted its position in shares of Sturm, Ruger & Company, Inc. by 21.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 83,236 shares of the company's stock worth $2,988,000 after buying an additional 14,687 shares during the last quarter. Invesco Ltd. lifted its position in shares of Sturm, Ruger & Company, Inc. by 3.7% during the 2nd quarter. Invesco Ltd. now owns 160,619 shares of the company's stock worth $5,766,000 after buying an additional 5,747 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Sturm, Ruger & Company, Inc. by 259.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,568 shares of the company's stock worth $56,000 after buying an additional 1,132 shares during the last quarter. Hedge funds and other institutional investors own 64.00% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Lake Street Capital lifted their price objective on shares of Sturm, Ruger & Company, Inc. from $41.00 to $43.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Weiss Ratings reiterated a "sell (d+)" rating on shares of Sturm, Ruger & Company, Inc. in a report on Friday, March 27th. Finally, Zacks Research upgraded shares of Sturm, Ruger & Company, Inc. from a "strong sell" rating to a "hold" rating in a report on Monday. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $43.00.

Sturm, Ruger & Company, Inc. Company Profile

Sturm, Ruger & Company, Inc, founded in 1949 by William B. Ruger and Alexander McCormick Sturm, is a leading American designer and manufacturer of firearms. Headquartered in Newport, New Hampshire, the company has established a reputation for precision engineering and durable products. Its manufacturing footprint includes facilities in Newport and Mayodan, North Carolina, where it maintains a vertically integrated production model spanning metallurgy, machining, and assembly.

The company's product portfolio encompasses a broad range of small arms, including centerfire and rimfire rifles, shotguns, semi-automatic pistols, revolvers, and accessories.

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