NYSE$RGR

Sturm Ruger & Company Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Sturm, Ruger & Company reported strong financial results for Q4 2020, driven by increased consumer demand and workforce efforts.

Sturm, Ruger & Company reported net sales of $169.3 million and diluted earnings of $1.78 per share for the fourth quarter of 2020, compared to net sales of $105.1 million and diluted earnings of $0.46 per share for the corresponding period in 2019. The company's Board of Directors declared a dividend of $0.71 per share for the fourth quarter.

  • Net sales for Q4 2020 were $169.3 million, a significant increase from $105.1 million in Q4 2019.
  • Diluted earnings per share for Q4 2020 reached $1.78, compared to $0.46 in the same period of the previous year.
  • The company's workforce has been reinforced by 250 employees since mid-2020, leading to a 30% increase in production during the latter half of the year.
  • Inventories remain depleted throughout the channel due to unprecedented demand in 2020, presenting an opportunity for inventory replenishment.

Headline financials

Total Revenue

$169M

Previous: $105M+61.0%
EPS (adj)

$1.78

Previous: $0.46+287.0%
Capital Expenditures

$16.2M

Previous: $11.1M+45.2%
Free Cash Flow

$45.6M

Previous: $29.5M+54.7%
Net Income

$0.00

Previous: $0.00
Operating Income

$0.00

Previous: $0.00
Gross Profit

$64.2M

Previous: $24.8M+159.0%
Cash & Equivalents

$20.1M

Previous: $165M-87.8%
Total Assets

$348M

Previous: $349M-0.2%
Stock-Based Comp

$1.7M

Previous: $1.58M+7.6%

Revenue & EPS history

Sturm Ruger · Revenue · Quarterly

$169M

Q4 2020+61%vs Q4 2019
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Sturm, Ruger is excited heading into 2021 with plans to launch new products, establish Marlin manufacturing cells, and broaden its catalog with Marlin lever action rifles in late 2021, while addressing inventory replenishment due to unprecedented demand.

Tailwinds

  • Strengthened workforce by 250 folks since the middle of 2020.
  • 30% increase in production during the latter half of the year.
  • Plans to launch new products that are sure to create excitement among shooters.
  • Hard at work getting the Marlin manufacturing cells established.
  • Looking forward to broadening catalog with the addition of Marlin lever action rifles in late 2021.

Headwinds

  • Market demand
  • Sales levels of firearms
  • Anticipated castings sales and earnings
  • The need for external financing for operations or capital expenditures
  • The results of pending litigation against the Company

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.0%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-3.3%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+21.7%

Q4 2014

Best reaction

-18.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.0%-10.9%-8.0%
Q4 2025-0.8%+0.2%+8.1%
Q3 2025-0.8%-5.5%-31.7%
Q1 2025-15.9%-18.0%-11.0%
Q4 2024+12.3%+15.0%+11.1%
Q3 2024-4.4%-1.7%-7.4%
Q2 2024-5.8%-10.2%-8.3%
Q1 2024-6.9%-5.8%-7.4%
Q4 2023-1.1%-2.3%+5.0%
Q3 2023-17.9%-17.5%-19.3%
Q2 2023+4.4%+4.5%-2.1%
Q1 2023-7.0%-6.6%-8.0%
Q4 2022+7.9%+4.0%-1.9%
Q3 2022-10.2%-4.2%+7.9%
Q2 2022-7.8%-11.2%-20.7%
Q1 2022-3.8%-4.8%-2.2%
Q4 2021+4.6%+12.5%+12.3%
Q3 2021-4.8%-7.2%-17.8%
Q2 2021+4.6%+7.9%-1.1%
Q1 2021+2.1%+4.6%+16.6%
Q4 2020-0.2%+3.0%+3.6%
Q3 2020+5.2%+3.7%-6.4%
Q2 2020+4.9%+8.4%-7.7%
Q1 2020+7.5%+17.1%+35.9%
Q4 2019+7.0%+3.5%-11.9%
Q3 2019-4.9%-7.6%-3.6%
Q2 2019-18.0%-18.6%-26.1%
Q1 2019-8.8%-7.1%-9.3%
Q4 2018-2.2%-0.4%-14.0%
Q3 2018-8.2%-8.2%-12.5%
Q2 2018+3.9%+2.7%+20.8%
Q1 2018+3.9%+5.0%+4.3%
Q4 2017+1.3%+0.9%+2.2%
Q3 2017+2.9%+1.5%+9.4%
Q2 2017-8.3%-11.5%-19.8%
Q1 2017+5.0%+5.0%+9.7%
Q4 2016+1.7%+1.8%+5.3%
Q3 2016+0.6%+3.9%-13.3%
Q2 2016-4.6%-3.2%-10.4%
Q1 2016+7.1%
Q4 2015+6.1%
Q3 2015-12.8%
Q2 2015+1.8%
Q1 2015-0.2%
Q4 2014+21.7%
Q3 2014-11.4%
Q2 2014-10.2%
Q1 2014-5.9%
Q4 2013-6.8%
Q3 2013+3.8%
Q2 2013+6.8%
Q1 2013+4.5%
Q4 2012+2.8%
Q3 2012-4.4%
Q2 2012-6.8%
Q1 2012+1.0%
Q4 2011-7.6%
Q3 2010+13.4%
Q3 2011+13.4%
Q2 2011+13.0%
Q1 2010+2.9%
Q1 2011-0.2%
Q4 2010+9.0%
Q2 2010+9.0%
Q4 2008+9.0%
Q4 2009+9.0%

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