American firearm manufacturing company Ruger (NYSE: RGR) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Ruger beat analysts’ revenue expectations last quarter, reporting revenues of $141.4 million, up 4.1% year on year. It was a slower 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 for active Edge members.
This quarter, the market is expecting Ruger’s revenue to decline 3% year on year, a reversal from the 1.3% 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 Q2 results, giving us a hint as to what we can expect. Harley-Davidson’s revenues decreased 5.9% year on year, beating analysts’ expectations by 5.4%, and AMC Entertainment reported revenues up 14.2%, topping estimates by 8.7%. Harley-Davidson traded down 7.7% following the results while AMC Entertainment was up 13.4%.
Read our full analysis of Harley-Davidson’s results here and AMC Entertainment’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Ruger is up 1.8% during the same time and is heading into earnings with an average analyst price target of $47 (compared to the current share price of $38.58).
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