Sturm, Ruger Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Sturm, Ruger (NYS: RGR) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 29 (Q3), 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.


Gross margins shrank, operating margins increased, net margins expanded.

Revenue details
 Sturm, Ruger booked revenue of $118.2 million. The two analysts polled by S&P Capital IQ hoped for revenue of $112.1 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $80.5 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 $0.88. The three earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.88 for Q3 were 57% 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 36.0%, 20 basis points worse than the prior-year quarter. Operating margin was 23.1%, 210 basis points better than the prior-year quarter. Net margin was 14.7%, 140 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $113.0 million. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $457.1 million. The average EPS estimate is $3.18.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 514 members out of 547 rating the stock outperform, and 33 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 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 $53.33.

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The article Sturm, Ruger Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.

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