American firearm manufacturing company Ruger (NYSE: RGR) will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.
Ruger beat analysts’ revenue expectations last quarter, reporting revenues of $158.1 million, up 19.3% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Ruger a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ruger’s revenue to grow 3.4% year on year, in line with the 3.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ruger has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ruger’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Brunswick delivered year-on-year revenue growth of 6.9%, meeting analysts’ expectations, and Harley-Davidson reported a revenue decline of 19.2%, topping estimates by 1.2%. Brunswick traded up 9.4% following the results while Harley-Davidson was also up 5.8%.
Read our full analysis of Brunswick’s results here and Harley-Davidson’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.7% 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 $43 (compared to the current share price of $44.82).
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