Overview

* Sturm Ruger ( RGR ) Q3 net sales rise to $126.8 mln from $122.3 mln in 2024

* Adjusted EPS for Q3 misses analyst expectations

* Company faced $1.9 mln in acquisition and operating costs at new facility

Outlook

* Sturm Ruger ( RGR ) expects capital expenditures to total $35 mln for the year

* Company focuses on improving profitability by addressing cost-structure

Result Drivers

* NEW FACILITY COSTS - Acquisition and operating costs at the new Hebron, KY facility impacted Q3 results

* HIGHER COSTS - Increased costs associated with material and technology affected Q3 performance

* NEW PRODUCT SALES - Sales of new products, including RXM pistol and Marlin rifles, accounted for 33.7% of Q3 firearm sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $126.13

Firearms mln

Sales

Q3 Miss $0.11 $0.38 (1

Adjusted Analyst)

EPS

Q3 EPS $0.10

Q3 Gross $19.16

Profit mln

Q3 -$3.48

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the recreational products peer group is "buy"

* Wall Street's median 12-month price target for Sturm Ruger & Company Inc ( RGR ) is $44.50, about 1.4% above its November 5 closing price of $43.86

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)