Firearms maker Sturm Ruger jumps after higher Q4 rev, earnings, raised dividend
20/02/2025 16:09
** Shares of Sturm, Ruger RGR.N up 11.8% to $39.65 on Thurs
and tracking best session in four years after Q4 results
** Stock hits over three-month high and on pace for biggest
one-day pct gain since Jan 6, 2021, the day President Donald
Trump's supporters stormed the Capitol
** Southport, Connecticutt-based firearms maker late Weds
reported Dec-qtr net sales of $145.8 mln, up from $130.6 mln a
yr-ago, while earnings increased by 4 cents to 62 cents/sh
** Co also announced qtrly dividend of 24 cents, up from
prior payout of 11 cents
** The dividend varies each qtr as co pays a percentage of
earnings rather than a fixed amount. This dividend represents
~40% of net income, co said
** "We were pleased with our sales growth and improved
profitability in the fourth quarter, despite the apparent
reduction in consumer demand, as adjusted NICS checks decreased
6% from the prior year," CEO Christopher Killoy said in
statement
** NICS is the Federal Bureau of Investigation's National
Instant Criminal Background Check System that determines if
someone can purchase a firearm. Although NICS checks do not
directly correlate to sales, they serve as the best barometer of
Americans' volume of purchases
** In the past, gun makers have seen sales rise ahead of
presidential elections amid concerns potential gun control
legislation could restrict access to firearms
** Lake Street Capital Markets is the only Wall Street brokerage
covering RGR with a "buy" rating and $46 PT, per LSEG
** RGR shares shed 22% of value in 2024, registering their
third consecutive yearly loss
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))