American firearm manufacturing company Ruger (NYSE: RGR) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Ruger missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $130.8 million, down 8.4% year on year. It was a disappointing quarter for the company, with a miss of analysts’ EBITDA estimates.
Is Ruger a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ruger’s revenue to grow 13.4% year on year to $137.1 million, a reversal from the 13.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.
The majority of analysts covering the company have 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 five times over the last two years.
Looking at Ruger’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Harley-Davidson’s revenues decreased 25.7% year on year, beating analysts’ expectations by 17.9%, and Brunswick reported a revenue decline of 20.1%, falling short of estimates by 1.3%. Harley-Davidson traded down 6.8% following the results while Brunswick was up 5%.
Read our full analysis of Harley-Davidson’s results here and Brunswick’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Ruger is down 1.6% during the same time and is heading into earnings with an average analyst price target of $51 (compared to the current share price of $41.03).
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