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Sturm, Ruger & Company (RGR) Q2 Earnings & Revenues Miss
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Leading publicly traded U.S. firearms maker, Sturm, Ruger & Company, Inc.’s (RGR - Free Report) second-quarter 2017 earnings of 57 cents per share missed the Zacks Consensus Estimate of $1.11 by 48.6%.
The bottom line was also down 53.3% from the year-ago figure of $1.22. The decline was primarily due to decrease in sales, the unfavorable de-leveraging of fixed manufacturing costs owing to the fall in production volumes, and $2.5 million expenses related to the recall of Mark IV pistols.
Revenues
The company reported revenues of $131.9 million in the reported quarter, down 21.4% from the prior-year figure of $167.9 million. The top line also missed the Zacks Consensus Estimate of $160 million by 17.6%.
The decline in year-over-year performance can be attributed to lower firearm and casting sales.
While firearm sales (comprising 99% of total sales) declined 21.5%, castings sales dropped 17.7%. Notably, new product sales accounted for 29% of total firearm sales in the second quarter.
Dividend
Sturm, Ruger declared a second-quarter dividend of 23 cents per share, payable on Aug 31 to shareholders of record as of Aug 15, 2017. The dividend represents about 40% of the company’s net income.
Per management, dividend payouts vary every quarter as they are based on a percentage of earnings rather than a fixed amount.
Operational Highlights
Gross profit plunged 38.4% to $34.9 million from $56.7 million in the year-ago quarter.
Total operating expenses fell 2.8% to $19.7 million in the quarter due to lower selling, general and administrative expenses. Operating income was also down 58% to $15.3 million from $36.5 million in the second quarter of 2016.
Sturm, Ruger’s earnings before interest, taxes, and depreciation and amortization in the reported quarter was $25 million, down 44.6%.
Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise
Sturm, Ruger ended the second quarter with $44 million cash compared with $87.1 million at 2016 end.
Cash generated from operations was approximately $39.9 million in the first half of 2017 compared with $66.1 million a year ago. The current ratio is 2.7 to 1, with no outstanding debt.
Capital expenditure was $10.9 million at the end of the first six months of the year. The company expects capital expenditure of about $35 million in 2017.
Sturm, Ruger returned $16.3 million to its shareholders through dividend payments during the first half of 2017. Also, the company repurchased 1.1 million of its common stocks for $53.5 million.
Peer Releases
Brunswick Corporation’s (BC - Free Report) second-quarter earnings of $1.35 per share surpassed the Zacks Consensus Estimate of $1.33 by 1.5%. Also, the figure rose 13.4% on a year-over-year basis.
Pool Corporation’s (POOL - Free Report) second-quarter earnings of $2.21 per share missed the Zacks Consensus Estimate of $2.24 by 1.3%. However, the figure rose 12% on a year-over-year basis.
Escalade, Incorporated (ESCA - Free Report) reported second-quarter adjusted earnings of 15 cents per share, missing the Zacks Consensus Estimate of 23 cents by 34.8%. However, earnings were in line with the year-ago figure.
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Sturm, Ruger & Company (RGR) Q2 Earnings & Revenues Miss
Leading publicly traded U.S. firearms maker, Sturm, Ruger & Company, Inc.’s (RGR - Free Report) second-quarter 2017 earnings of 57 cents per share missed the Zacks Consensus Estimate of $1.11 by 48.6%.
The bottom line was also down 53.3% from the year-ago figure of $1.22. The decline was primarily due to decrease in sales, the unfavorable de-leveraging of fixed manufacturing costs owing to the fall in production volumes, and $2.5 million expenses related to the recall of Mark IV pistols.
Revenues
The company reported revenues of $131.9 million in the reported quarter, down 21.4% from the prior-year figure of $167.9 million. The top line also missed the Zacks Consensus Estimate of $160 million by 17.6%.
The decline in year-over-year performance can be attributed to lower firearm and casting sales.
While firearm sales (comprising 99% of total sales) declined 21.5%, castings sales dropped 17.7%. Notably, new product sales accounted for 29% of total firearm sales in the second quarter.
Dividend
Sturm, Ruger declared a second-quarter dividend of 23 cents per share, payable on Aug 31 to shareholders of record as of Aug 15, 2017. The dividend represents about 40% of the company’s net income.
Per management, dividend payouts vary every quarter as they are based on a percentage of earnings rather than a fixed amount.
Operational Highlights
Gross profit plunged 38.4% to $34.9 million from $56.7 million in the year-ago quarter.
Total operating expenses fell 2.8% to $19.7 million in the quarter due to lower selling, general and administrative expenses. Operating income was also down 58% to $15.3 million from $36.5 million in the second quarter of 2016.
Sturm, Ruger’s earnings before interest, taxes, and depreciation and amortization in the reported quarter was $25 million, down 44.6%.
Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise
Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise | Sturm, Ruger & Company, Inc. Quote
Financial Performance
Sturm, Ruger ended the second quarter with $44 million cash compared with $87.1 million at 2016 end.
Cash generated from operations was approximately $39.9 million in the first half of 2017 compared with $66.1 million a year ago. The current ratio is 2.7 to 1, with no outstanding debt.
Capital expenditure was $10.9 million at the end of the first six months of the year. The company expects capital expenditure of about $35 million in 2017.
Sturm, Ruger returned $16.3 million to its shareholders through dividend payments during the first half of 2017. Also, the company repurchased 1.1 million of its common stocks for $53.5 million.
Peer Releases
Brunswick Corporation’s (BC - Free Report) second-quarter earnings of $1.35 per share surpassed the Zacks Consensus Estimate of $1.33 by 1.5%. Also, the figure rose 13.4% on a year-over-year basis.
Pool Corporation’s (POOL - Free Report) second-quarter earnings of $2.21 per share missed the Zacks Consensus Estimate of $2.24 by 1.3%. However, the figure rose 12% on a year-over-year basis.
Escalade, Incorporated (ESCA - Free Report) reported second-quarter adjusted earnings of 15 cents per share, missing the Zacks Consensus Estimate of 23 cents by 34.8%. However, earnings were in line with the year-ago figure.
Zacks Rank
Sturm, Ruger currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>