American firearm manufacturing company Ruger (NYSE: RGR) will be reporting results this Wednesday afternoon. Here’s what to look for.
Ruger missed analysts’ revenue expectations by 8.3% last quarter, reporting revenues of $135.7 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA 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 decline 9.8% year on year to $117.9 million, a further deceleration from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
The majority of analysts covering the company have 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 six times over the last two years.
Looking at Ruger’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Brunswick posted flat year-on-year revenue, beating analysts’ expectations by 16.4%, and Hasbro reported a revenue decline of 1.5%, topping estimates by 11.2%. Brunswick traded down 6% following the results while Hasbro was also down 3.3%.
Read our full analysis of Brunswick’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. Ruger is down 2.2% during the same time and is heading into earnings with an average analyst price target of $41 (compared to the current share price of $35.12).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
