Ruger (RGR) Reports Earnings Tomorrow: What To Expect

American firearm manufacturing company Ruger (NYSE:RGR) will be reporting earnings this Monday after market hours. Here’s what you need to know.

Ruger beat analysts’ revenue expectations last quarter, reporting revenues of $126.8 million, up 3.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

This quarter, the market is expecting Ruger’s revenue to decline 4.5% year on year, a reversal from the 11.6% 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 to 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 - leisure products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MasterCraft delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 4.1%, and Brunswick reported revenues up 15.5%, topping estimates by 10.3%. MasterCraft traded up 8.9% following the results while Brunswick was down 4.7%.

Investors in the consumer discretionary - leisure products segment have had steady hands going into earnings, with share prices flat over the last month. Ruger is up 1.5% during the same time and is heading into earnings with an average analyst price target of $44.50 (compared to the current share price of $37.25).

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