Sturm, Ruger & Company, Inc.’s (RGR - Free Report) second-quarter 2018 earnings of 86 cents per share reflected an annual rise of 50.9% from 57 cents. The upside can be attributed to year-over-year increase in its gross profit as well as operating income.
In the quarter under review, the company’s net sales came in at $128.4 million, down 2.6% from the prior-year figure of $131.8 million. Lower production volumes led to the sales decline.
Firearm sales (comprising almost 99% of total sales) decreased 2.7% on a year-over-year basis, while castings sales improved 3.7%. New product sales accounted for 29% of total firearm sales in the first half of 2018. These included the Pistol Caliber Carbine, the Mark IV pistol, the LCP II pistol, the EC9s pistol, the Security-9 pistol and the Precision Rimfire Rifle.
Sturm, Ruger declared a second-quarter dividend of 34 cents per share, payable on Aug 31, 2018, to shareholders of record as of Aug 17. The dividend represents about 40% of net income. This reflects an improvement of 6.25% from dividend of 32 cents per share, which the company paid in the first quarter of 2018.
Per management, dividend payout varies every quarter as it is based on a percentage of earnings rather than a fixed amount.
Gross profit increased 4.7% to $36.6 million in the reported quarter. Total operating expenses dropped 12.3% year over year to $17.23 million in the second quarter owing to lower selling expenses.
Consequently, operating income increased 26.6% to $19.37 million in the reported quarter from $15.3 million at the end of second-quarter 2017.
Sturm, Ruger’s earnings before interest, taxes, and depreciation and amortization (EBITDA) was $28.2 million, up 12.8% from the year-ago quarter.
Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise