Sturm, Ruger Outruns Estimates Again

Seth Jayson, The Motley Fool
Updated

Sturm, Ruger (NYS: RGR) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Sturm, Ruger beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
 Sturm, Ruger chalked up revenue of $141.8 million. The one analyst polled by S&P Capital IQ foresaw revenue of $119.0 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $93.2 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 $1.00. The three earnings estimates compiled by S&P Capital IQ predicted $0.82 per share. Non-GAAP EPS of $1.00 for Q4 were 85% higher than the prior-year quarter's $0.54 per share. GAAP EPS of $1.02 for Q4 were 89% higher than the prior-year quarter's $0.54 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 34.9%, 170 basis points better than the prior-year quarter. Operating margin was 21.9%, 400 basis points better than the prior-year quarter. Net margin was 14.0%, 270 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $124.0 million. On the bottom line, the average EPS estimate is $0.94.

Next year's average estimate for revenue is $494.0 million. The average EPS estimate is $3.48.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 621 members out of 659 rating the stock outperform, and 38 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Sturm, Ruger a green thumbs-up, and six 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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The article Sturm, Ruger Outruns Estimates Again 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 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.

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