Sturm, Ruger & Company, Inc.’s RGR 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.
Sales
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.
Dividend
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.
Operational Highlights
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
Sturm, Ruger & Company, Inc. Price, Consensus and EPS Surprise | Sturm, Ruger & Company, Inc. Quote
Financial Performance
The company ended second-quarter 2018 with cash of $131.7 million compared with $63.5 million at 2017-end.
Cash generated from operations was approximately $81 million compared with $39.9 million in the year-ago quarter. The current ratio is 3.3 to 1, without any outstanding debt.
Capital expenditures totaled $2 million at the end of second-quarter 2018.
Sturm, Ruger returned $6 million to shareholders through dividend payments during the second quarter.
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.
Recent Releases
Here are some companies from the Consumer Discretionary sector that recently released their respective quarterly results.
Pool Corporation’s POOL second-quarter 2018 earnings of $2.80 per share in the quarter lagged the Zacks Consensus Estimate of $2.84 by 1.4%
Mohawk Industries MHK second-quarter 2018 adjusted earnings per share (EPS) of $3.51 missed the Zacks Consensus Estimate of $3.88 by 9.5%
Dolby Laboratories DLB reported third-quarter fiscal 2018 adjusted earnings of 92 cents per share, surpassing the Zacks Consensus Estimate of 82 cents.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 – 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment