Sturm, Ruger Beats on Both Top and Bottom Lines

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Sturm, Ruger (NYSE: RGR) reported earnings on Aug. 1. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

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