On November 1, 2023, Sturm Ruger & Co Inc (RGR, Financial) announced its third-quarter earnings for 2023. The company reported net sales of $120.9 million and diluted earnings of 42¢ per share. This represents a decrease from the corresponding period in 2022, where net sales were $139.4 million and diluted earnings were $1.03 per share.
Financial Performance
For the nine months ended September 30, 2023, net sales were $413.2 million and diluted earnings were $2.13 per share. This is a decrease from the same period in 2022, where net sales were $446.6 million and diluted earnings were $3.90 per share.
The company's Board of Directors declared a dividend of 17¢ per share for the third quarter for stockholders of record as of November 15, 2023, payable on November 29, 2023. This dividend is approximately 40% of net income.
CEO Commentary
“Our third quarter sales and profitability decreased from last year, as overall firearms demand declined, creating a challenging, promotion-rich marketplace. We remained focused on the long-term, offering only modest promotions and adjusting the production rates on various product lines to better match demand, which reduced our overall production. While our decreased production hindered current period profitability, it resulted in only a nominal increase in our inventories and essentially flat distributor inventories during this seasonally slow quarter. Our debt-free balance sheet and diverse product offerings have us well positioned to capitalize when the firearms market rebounds.” - CEO Christopher J. Killoy
Balance Sheet Summary
As of September 30, 2023, the company reported total assets of $400.35 million, down from $484.76 million as of December 31, 2022. Current assets stood at $273.96 million, with cash and short-term investments making up a significant portion. The company remains debt-free, with total stockholders' equity amounting to $335.3 million.
Future Outlook
Despite the challenging market conditions, Sturm Ruger & Co Inc (RGR, Financial) remains focused on long-term shareholder value. The company continues to prioritize new product development and is well-positioned to capitalize on market opportunities when the firearms market rebounds.
Explore the complete 8-K earnings release (here) from Sturm Ruger & Co Inc for further details.
