Ruger Earnings: What To Look For From RGR

StockStory
02-18
Ruger Earnings: What To Look For From RGR

American firearm manufacturing company Ruger (NYSE:RGR) will be reporting results tomorrow after the bell. Here’s what you need to know.

Ruger missed analysts’ revenue expectations by 10.8% last quarter, reporting revenues of $122.3 million, up 1.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.

Is Ruger a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Ruger’s revenue to grow 5.5% year on year to $137.8 million, a reversal from the 12.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ruger has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Ruger’s peers in the leisure products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 5.1% year on year, beating analysts’ expectations by 4.8%, and Brunswick reported a revenue decline of 15.2%, topping estimates by 11.3%. Malibu Boats’s stock price was unchanged after the results. Brunswick was down 1.1%.

Read our full analysis of Malibu Boats’s results here and Brunswick’s results here.

Investors in the leisure products segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Ruger’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $46 (compared to the current share price of $35.52).

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