Sturm, Ruger & Company, Inc.’s third-quarter 2018 earnings of 52 cents per share reflected an annual decline of 1.9% from 53 cents.
In the quarter under review, the company’s net sales came in at $114.9 million, up 9.7% from the prior-year figure of $ 104.8 million. Higher production volumes led to the top line growth.
Firearm sales (comprising almost 99.8% of total sales) increased 9.8% on a year-over-year basis, whereas castings sales declined 1%. Sales of new products, which include the Pistol Caliber Carbine, the Mark IV pistol, the LCP II pistol, the EC9s pistol, the Security-9 pistol and the Precision Rimfire Rifle, accounted for 30% of total firearm sales in the first nine months of 2018.
Sturm, Ruger declared a third-quarter dividend of 21 cents per share, payable on Nov 30 to shareholders of record as of Nov 16, 2018. The dividend represents about 40% of the company’s net income.
Per management, dividend payouts vary every quarter as it is based on percentage of earnings rather than a fixed amount.
Gross profit declined 6.9% to $28.1 million from $30.2 million in the year-ago quarter.
Total operating expenses fell 4.5% to $16.1 million due to lower selling expenses. Operating income was also down 10.2% to $11.9 million from $13.3 million in the third quarter of 2017.
Sturm, Ruger’s earnings before interest, taxes, and depreciation and amortization in the reported quarter was $20.45 million, down 1.85%.
Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise