Sturm Ruger shares tumble on disappointing Q1 earnings

Published 01/05/2025, 16:42
Sturm Ruger shares tumble on disappointing Q1 earnings

NEW YORK - Sturm, Ruger & Company, Inc. (NYSE:RGR) reported first-quarter earnings that fell short of analyst expectations, sending shares down 11%.

The firearms manufacturer posted adjusted earnings per share of $0.46, missing the analyst consensus of $0.67 by $0.21. Revenue for the quarter came in at $135.7 million, below the $148.58 million estimate and down 0.8% YoY.

Despite the broader firearms market facing challenges, with retail unit sales declining 9.6% YoY according to industry data, Ruger managed to keep sales relatively flat. CEO Todd W. Seyfert attributed this resilience to the company’s "disciplined operations and strong new product pipeline."

"Although the firearms industry may be cyclical, Ruger does not have to be, and our performance this quarter supports that," Seyfert stated.

New products, including the RXM pistol and Marlin lever-action rifles, accounted for 31.6% of firearm sales in the quarter. The company’s cash and short-term investments totaled $108.3 million at the end of the period.

Looking ahead, Seyfert emphasized the company’s focus on innovation and plans to expand availability of key models. He noted, "We continue to plan for growth, position ourselves for long-term market leadership, and aggressively manage costs across the business."

Ruger’s board declared a quarterly dividend of $0.18 per share, payable on May 30, 2025, to stockholders of record as of May 16, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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