Sturm Ruger, the largest publicly traded U.S. firearms maker, reported fourth-quarter earnings that missed analysts' estimates for the first time since 2009.
Per-share profit rose to $1.33 from $1 a year earlier, the Fairfield-based company said late Tuesday without giving a net-income figure. That trailed the $1.38 average estimate of analysts in a Bloomberg survey, and the shares fell 7.9 percent to $62.99 in New York.
The results put an end to 16 quarters of beating analysts' estimates. While enthusiasts have been stockpiling guns amid concern that President Barack Obama's administration would seek tighter firearm regulations, Congress hasn't curbed access and Sturm Ruger's fourth-quarter orders fell to the lowest in 2013.
"It's the overall market weakness," said Brian Ruttenbur, a CRT Capital Group analyst in Stamford. Background checks, which can serve as a general guide to sales, have dropped by 50 percent in the last month or so, he said.
Ruttenbur rates Sturm Ruger as buy. He is among two analysts with that recommendation, while one says hold and the other says sell, according to data compiled by Bloomberg.
Revenue rose 28 percent in the quarter to $181.9 million, Sturm Ruger said. That beat analysts' estimates of $179 million. The firm declared a quarterly dividend of 54 cents payable March 28 for shareholders of record as of March 14.
Those payouts vary each quarter because they're based on a percentage of earnings rather than a fixed amount per share, according to a Sturm Ruger statement. The previous dividend was 58 cents a share.
News Source: www.newstimes.com
.jpg)
0 comments:
Post a Comment