Sturm, Ruger Beats on the Top Line
Sturm, Ruger (NYS: RGR) reported earnings on July 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 29 (Q2), Sturm, Ruger beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Sturm, Ruger booked revenue of $179.5 million. The one analyst polled by S&P Capital IQ expected sales of $154.7 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $119.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.63. The one earnings estimate compiled by S&P Capital IQ predicted $1.18 per share. GAAP EPS of $1.63 for Q2 were 79% higher than the prior-year quarter's $0.91 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 39.4%, 170 basis points better than the prior-year quarter. Operating margin was 28.3%, 460 basis points better than the prior-year quarter. Net margin was 18.0%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $137.6 million. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $584.6 million. The average EPS estimate is $4.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 636 members out of 676 rating the stock outperform, and 40 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Sturm, Ruger a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sturm, Ruger is underperform, with an average price target of $40.00.
Looking for alternatives to Sturm, Ruger? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
Add Sturm, Ruger to My Watchlist.
The article Sturm, Ruger Beats on the Top Line 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. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.