Sturm, Ruger & Company, Inc. (NYSE:RGR) Announces Quarterly Earnings Results

Sturm, Ruger & Company, Inc. (NYSE:RGR) posted its earnings results on Wednesday. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.07, FiscalAI reports. Sturm, Ruger & Company, Inc. had a return on equity of 6.58% and a net margin of 2.11%. The company had revenue of $147.63 million for the quarter, compared to analyst estimates of $131.03 million. During the same period last year, the company earned $0.10 earnings per share. The business’s revenue was up 16.5% compared to the same quarter last year.

Here are the key takeaways from Sturm, Ruger & Company, Inc.’s conference call:

• Sales and profitability improved: Third-quarter net sales rose 17% year over year to $148 million, adjusted EBITDA increased to $14 million from $3 million, and adjusted diluted earnings per share climbed to $0.44 from $0.10.
• Higher production and solid channel conditions: Management said output reached a near-term record, supported by increased capacity, production focus, and improved planning. It described distributor inventories as healthy, consumer demand as satisfactory, and backlog as healthy heading into the holiday season.
• Some product families are being paused: The company said suspended or phased-out products account for about 4% of units and roughly $25 million in revenue, while generating minimal to no profit. Management framed the moves as temporary suspensions where appropriate, but acknowledged some customer dissatisfaction.
• Ruger is redirecting resources toward growth: Management said portfolio simplification is intended to free capacity for more profitable products and innovation, with numerous new models expected in the coming months and launches planned around SHOT Show.
• Strong balance sheet supports investment: Ruger ended the quarter with $101 million in cash and short-term investments, no debt, and a 3-to-1 current ratio. It generated $24 million of operating cash in the first nine months and expects about $30 million in capital expenditures for 2026.

Sturm, Ruger & Company, Inc. Price Performance

Shares of NYSE RGR traded down $0.69 during trading hours on Thursday, hitting $49.22. 491,793 shares of the company’s stock were exchanged, compared to its average volume of 208,257. The company’s 50-day moving average price is $42.27 and its 200-day moving average price is $39.81. Sturm, Ruger & Company, Inc. has a 1-year low of $28.33 and a 1-year high of $51.42. The stock has a market capitalization of $786.46 million, a price-to-earnings ratio of 65.94 and a beta of 0.11.

Sturm, Ruger & Company, Inc. Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 20th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. This is a drop from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.21. Sturm, Ruger & Company, Inc.’s payout ratio is presently 112.00%.

Insider Transactions at Sturm, Ruger & Company, Inc.

In other news, VP Michael Wilson sold 628 shares of the company’s stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $45.47, for a total transaction of $28,555.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,828 shares of company stock valued at $77,725. Company insiders own 4.60% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have recently commented on RGR shares. Weiss Ratings reissued a “hold (c)” rating on shares of Sturm, Ruger & Company, Inc. in a report on Friday, October 30th. Zacks Research raised Sturm, Ruger & Company, Inc. from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Finally, Wall Street Zen upgraded Sturm, Ruger & Company, Inc. from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 1st. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $46.00.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company, Inc designs, manufactures, and sells firearms for the commercial sporting market. Its product portfolio includes pistols, revolvers, rifles, and related accessories marketed under the Ruger brand. The company serves customers through independent distributors, retailers, and other firearms dealers.

Founded in 1949 by William B. Ruger and Alexander M. Sturm, the company is one of the largest firearms manufacturers in the United States. Its products are manufactured in the U.S.