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Sturm, Ruger (RGR) Q3 Earnings Decline, Revenues Up Y/Y

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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.

Operational Highlights

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


Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise | Sturm, Ruger & Company, Inc. Quote

Financial Performance

Sturm, Ruger ended the third quarter of 2018 with $137.8 million cash compared with $63.5 million at 2017-end.

Cash generated from operations was approximately $96 million in the first nine months of 2018 compared with $59 million a year ago. The current ratio is 3.5 to 1, with no outstanding debt.

Capital expenditure was $5 million at the end of the nine months of the current year. The company expects capital expenditure of about $10 million in 2018.

Sturm, Ruger returned $16 million to its shareholders through dividend payments during the nine months.

Zacks Rank

Sturm, Ruger carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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