In This Article:
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Net Sales: $135.7 million for Q1 2025.
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Diluted Earnings Per Share: $0.46 for Q1 2025.
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Gross Margin: Increased from 21.5% to 22% in Q1 2025.
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Cash and Short-term Investments: $108 million as of March 29, 2025.
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Current Ratio: 4.6:1 as of March 29, 2025.
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Stockholders' Equity: $321 million, equating to a book value of $19.39 per share.
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Cash from Operations: $11.1 million generated in Q1 2025.
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Capital Expenditures: $1.1 million in Q1 2025, with expectations to exceed $30 million for the year.
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Shareholder Returns: $7 million returned through $4 million in dividends and $3 million in share repurchases.
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Quarterly Dividend: $0.18 per share declared for shareholders of record as of May 16, 2025.
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New Product Sales: $40.7 million, accounting for 31.6% of net sales in Q1 2025.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sturm Ruger & Co Inc (NYSE:RGR) reported an increase in diluted earnings per share from $0.40 in Q1 2024 to $0.46 in Q1 2025.
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The company maintained a strong financial position with $108 million in cash and short-term investments and no debt.
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RGR's gross margin improved from 21.5% to 22% year-over-year, driven by favorable leveraging of fixed costs.
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New product sales accounted for 31.6% of net firm sales, highlighting successful product innovation.
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The company returned $7 million to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns.
Negative Points
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Retail firearm unit sales declined 9.6% year-over-year, with revenue down 11.5%, indicating a challenging market environment.
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Adjusted NICS checks, a measure of background checks for firearm purchases, declined by 4.2%, reflecting reduced consumer demand.
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Despite maintaining sales, the broader firearms market is experiencing cyclical downturns, which could impact future performance.
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The company anticipates increased capital expenditures, which may pressure cash flow and require careful financial management.
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Tariffs and supply chain uncertainties pose potential risks, although currently mitigated by the company's US-based manufacturing.
Q & A Highlights
Q: You mentioned a higher-than-normal investment in capital expenditure. Are you preparing for a more aggressive pace of new product launches? A: Yes, we are. The biggest opportunity for us is the pace of new product introductions. We plan to align our investment in machines and capacity expansion with our product launch efforts to bring products to market faster.