Sturm, Ruger Q1 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy RGR?
Source: seekingalpha
- Earnings Miss: Sturm, Ruger's Q1 non-GAAP EPS of $0.27 fell short of expectations by $0.07, indicating potential pressure on profitability that could affect investor confidence.
- Revenue Growth: The company reported Q1 revenue of $141.36 million, a 4.1% year-over-year increase, surpassing market expectations by $4.1 million, suggesting a resilient growth trajectory despite market conditions.
- New Product Impact: New products accounted for $51.6 million, or 41% of firearm sales, highlighting the company's successful innovation efforts, which may lay the groundwork for future revenue growth.
- Increased Market Competition: Despite revenue growth, the earnings miss may reflect intensified market competition, prompting investors to monitor how the company addresses future challenges to maintain profitability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RGR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RGR
Wall Street analysts forecast RGR stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 39.140
Low
41.00
Averages
41.00
High
41.00
Current: 39.140
Low
41.00
Averages
41.00
High
41.00
About RGR
Sturm, Ruger & Company, Inc. is principally engaged in the design, manufacture, and sale of firearms to domestic customers. The Company's segments include firearms and castings. The firearms segment manufactures and sells rifles, pistols, revolvers, and shotguns principally to a number of federally licensed, independent wholesale distributors primarily located in the United States. The Company also manufactures and sells accessories and replacement parts for its firearms. The Company offers firearm products, under the Ruger name, in the following industry categories: rifles, shotguns, pistols, and revolvers. In addition, the Company offers lever-action rifles under the Marlin name and bolt-action rifles under the Glenfield name. The castings segment manufactures and sells steel investment castings and metal injection molding (MIM) parts. The castings and MIM parts are sold to outside customers, either directly or through manufacturers' representatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sturm, Ruger Q1 2026 Earnings Call Insights
- Executive Transition: Sturm, Ruger announced Andrew Wieland as the new CFO, succeeding Tom, which signifies a stabilization in governance structure that could enhance investor confidence and facilitate the execution of long-term strategies.
- Sales Growth: The company reported a 4% year-over-year increase in net sales to $141 million in Q1, exceeding market expectations and demonstrating its ability to sustain growth in a competitive landscape, particularly driven by new product offerings.
- Production Challenges: Severe weather disruptions led to a shortfall of approximately 30,000 units, yet the company maintained strong order demand with a 28% increase in units ordered, indicating robust market interest in its products.
- Capital Expenditure Plans: The company expects capital expenditures to total $30 million for 2026, aimed at expanding production capacity and enhancing manufacturing capabilities to meet growing market demand, reflecting confidence in future growth prospects.
See More
Sturm, Ruger Q1 Earnings Report
- Earnings Miss: Sturm, Ruger's Q1 non-GAAP EPS of $0.27 fell short of expectations by $0.07, indicating potential pressure on profitability that could affect investor confidence.
- Revenue Growth: The company reported Q1 revenue of $141.36 million, a 4.1% year-over-year increase, surpassing market expectations by $4.1 million, suggesting a resilient growth trajectory despite market conditions.
- New Product Impact: New products accounted for $51.6 million, or 41% of firearm sales, highlighting the company's successful innovation efforts, which may lay the groundwork for future revenue growth.
- Increased Market Competition: Despite revenue growth, the earnings miss may reflect intensified market competition, prompting investors to monitor how the company addresses future challenges to maintain profitability.
See More
Sturm Ruger to Announce Q1 Earnings on May 6
- Earnings Announcement Schedule: Sturm Ruger is set to release its Q1 2023 earnings report on May 6 after market close, with consensus EPS estimate at $0.34 and revenue forecast at $137.26 million, reflecting a 1.1% year-over-year growth.
- Historical Performance Review: Over the past two years, Sturm Ruger has exceeded EPS estimates 25% of the time and revenue estimates 63% of the time, indicating a solid track record in managing market expectations.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward revision with no downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Market Background Analysis: With Sturm Ruger entering a cooperation agreement with Beretta Holding and a sequential rise in firearm background checks in March, there are potential growth opportunities in the accessory business and overall market demand.
See More
Ruger Enters Strategic Cooperation Agreement with Beretta Holding
- Equity Increase Plan: Ruger will allow Beretta Holding to increase its stake to 25% of the company, enabling a partial tender offer at $44.80 per share, which represents a ~20% premium over the 60-day average price, likely enhancing Ruger's capital structure and market confidence.
- Board Expansion Rights: Under the agreement, Beretta Holding will have the right to nominate up to two independent directors after the 2026 Annual Meeting, temporarily expanding the board, which will help improve corporate governance and strengthen collaboration with major shareholders.
- Three-Year Standstill Commitment: Beretta Holding commits to a three-year standstill during which it will not initiate any proxy contests and will vote in alignment with Ruger's board recommendations, aiming to maintain Ruger's independence and stability while aligning shareholder interests.
- Strategic Cooperation Outlook: The collaboration between Ruger and Beretta will explore commercial cooperation opportunities while ensuring compliance with applicable laws, allowing Ruger to remain an independent U.S. public company while benefiting from Beretta's industry leadership and extensive experience.
See More
Sturm Ruger Enters Cooperation Agreement with Beretta Holding
- Cooperation Agreement: Sturm Ruger (RGR) has entered into a cooperation agreement with rival Beretta, which has agreed to withdraw its director nominations for the 2026 annual meeting, indicating a strategic collaboration in the industry consolidation.
- Investment Increase Plan: Under the terms of the agreement, Beretta is entitled to increase its stake in Sturm Ruger to 25%, which will provide Beretta with greater influence while potentially bringing more capital support to Ruger.
- Shareholder Stability Commitment: Beretta has committed to a three-year standstill during which it will not initiate or support any proxy contests, aiming to maintain governance stability and reduce external disruptions, thus creating a favorable environment for Ruger's long-term development.
- Positive Market Reaction: Sturm Ruger's stock rose by 1.6%, reflecting the market's positive perception of this cooperation agreement and indicating increased investor confidence in the company's future growth potential.
See More
STURM RUGER & COMPANY INC - BERETTA HOLDING ENTERS THREE-YEAR STANDSTILL AGREEMENT
Company Announcement: Sturm Ruger & Company Inc. has committed to a three-year standstill agreement with Beretta Holding.
Implications of Agreement: This standstill agreement may affect future business operations and strategies between the two companies.
See More
Sturm, Ruger Q1 2026 Earnings Call Insights
- Executive Transition: Sturm, Ruger announced Andrew Wieland as the new CFO, succeeding Tom, which signifies a stabilization in governance structure that could enhance investor confidence and facilitate the execution of long-term strategies.
- Sales Growth: The company reported a 4% year-over-year increase in net sales to $141 million in Q1, exceeding market expectations and demonstrating its ability to sustain growth in a competitive landscape, particularly driven by new product offerings.
- Production Challenges: Severe weather disruptions led to a shortfall of approximately 30,000 units, yet the company maintained strong order demand with a 28% increase in units ordered, indicating robust market interest in its products.
- Capital Expenditure Plans: The company expects capital expenditures to total $30 million for 2026, aimed at expanding production capacity and enhancing manufacturing capabilities to meet growing market demand, reflecting confidence in future growth prospects.
See More
Sturm, Ruger Q1 Earnings Report
- Earnings Miss: Sturm, Ruger's Q1 non-GAAP EPS of $0.27 fell short of expectations by $0.07, indicating potential pressure on profitability that could affect investor confidence.
- Revenue Growth: The company reported Q1 revenue of $141.36 million, a 4.1% year-over-year increase, surpassing market expectations by $4.1 million, suggesting a resilient growth trajectory despite market conditions.
- New Product Impact: New products accounted for $51.6 million, or 41% of firearm sales, highlighting the company's successful innovation efforts, which may lay the groundwork for future revenue growth.
- Increased Market Competition: Despite revenue growth, the earnings miss may reflect intensified market competition, prompting investors to monitor how the company addresses future challenges to maintain profitability.
See More
Sturm Ruger to Announce Q1 Earnings on May 6
- Earnings Announcement Schedule: Sturm Ruger is set to release its Q1 2023 earnings report on May 6 after market close, with consensus EPS estimate at $0.34 and revenue forecast at $137.26 million, reflecting a 1.1% year-over-year growth.
- Historical Performance Review: Over the past two years, Sturm Ruger has exceeded EPS estimates 25% of the time and revenue estimates 63% of the time, indicating a solid track record in managing market expectations.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward revision with no downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Market Background Analysis: With Sturm Ruger entering a cooperation agreement with Beretta Holding and a sequential rise in firearm background checks in March, there are potential growth opportunities in the accessory business and overall market demand.
See More
Ruger Enters Strategic Cooperation Agreement with Beretta Holding
- Equity Increase Plan: Ruger will allow Beretta Holding to increase its stake to 25% of the company, enabling a partial tender offer at $44.80 per share, which represents a ~20% premium over the 60-day average price, likely enhancing Ruger's capital structure and market confidence.
- Board Expansion Rights: Under the agreement, Beretta Holding will have the right to nominate up to two independent directors after the 2026 Annual Meeting, temporarily expanding the board, which will help improve corporate governance and strengthen collaboration with major shareholders.
- Three-Year Standstill Commitment: Beretta Holding commits to a three-year standstill during which it will not initiate any proxy contests and will vote in alignment with Ruger's board recommendations, aiming to maintain Ruger's independence and stability while aligning shareholder interests.
- Strategic Cooperation Outlook: The collaboration between Ruger and Beretta will explore commercial cooperation opportunities while ensuring compliance with applicable laws, allowing Ruger to remain an independent U.S. public company while benefiting from Beretta's industry leadership and extensive experience.
See More
Sturm Ruger Enters Cooperation Agreement with Beretta Holding
- Cooperation Agreement: Sturm Ruger (RGR) has entered into a cooperation agreement with rival Beretta, which has agreed to withdraw its director nominations for the 2026 annual meeting, indicating a strategic collaboration in the industry consolidation.
- Investment Increase Plan: Under the terms of the agreement, Beretta is entitled to increase its stake in Sturm Ruger to 25%, which will provide Beretta with greater influence while potentially bringing more capital support to Ruger.
- Shareholder Stability Commitment: Beretta has committed to a three-year standstill during which it will not initiate or support any proxy contests, aiming to maintain governance stability and reduce external disruptions, thus creating a favorable environment for Ruger's long-term development.
- Positive Market Reaction: Sturm Ruger's stock rose by 1.6%, reflecting the market's positive perception of this cooperation agreement and indicating increased investor confidence in the company's future growth potential.
See More
STURM RUGER & COMPANY INC - BERETTA HOLDING ENTERS THREE-YEAR STANDSTILL AGREEMENT
Company Announcement: Sturm Ruger & Company Inc. has committed to a three-year standstill agreement with Beretta Holding.
Implications of Agreement: This standstill agreement may affect future business operations and strategies between the two companies.
See More
