RGR misses estimates on weak industry demand; SWHC also off

Sturm, Ruger & Co. (NYSE:RGR) estimates it saw a 31% Y/Y drop in Q2 in units sold from distributors to retailers, and an 11% drop for the whole of 1H14. Total NICS adjusted background checks (used to measure industry demand) fell 12% in Q2, and 18% in 1H14.

Declining sales led gross margin to fall to 32.8% from 39.4% a year ago. Opex fell 13% to $17.3M, with both sales and G&A spend declining. New products were 18% of 1H firearm sales.

$75M has been added to RGR's buyback authorization, raising its size to $100M.

RGR -4% AH. Smith & Wesson (NASDAQ:SWHC) -2.3% in sympathy.

Q2 results, PR

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Comments (9)
  • cn_habs
    , contributor
    Comments (581) | Send Message
    Baring another mass shooting, RGR and SWHC aren't going up anytime soon given the historic highs they reached last year.
    29 Jul 2014, 06:21 PM Reply Like
  • MrMatt
    , contributor
    Comments (1395) | Send Message
    They don't need to maintain the recent high volumes to remain very profitable companies.
    I'm holding on.
    29 Jul 2014, 07:15 PM Reply Like
  • cn_habs
    , contributor
    Comments (581) | Send Message
    Being profitable is one thing, hoping capital appreciation is another.
    29 Jul 2014, 09:28 PM Reply Like
  • bboggs
    , contributor
    Comments (61) | Send Message
    Obama and the Dems won't do anything regarding control control before the mid-term election. After November, watch out, gun control will be a hot topic again and will drive gun sales.
    29 Jul 2014, 08:39 PM Reply Like
  • User 6830851
    , contributor
    Comments (275) | Send Message
    A fine company, but I need a reliable dividend that grows. I sold my position in RGR today.
    29 Jul 2014, 10:59 PM Reply Like
  • fendermon
    , contributor
    Comments (888) | Send Message
    @user- It is reliable...it's pegged at 40% of profits. Growth is anybody's guess.
    30 Jul 2014, 06:41 AM Reply Like
  • Medici Banker
    , contributor
    Comment (1) | Send Message
    zero debt, 100 milion dollar buyback, and well run company. great time to get in with the stock down.
    30 Jul 2014, 12:21 AM Reply Like
  • ikarus
    , contributor
    Comments (1190) | Send Message
    It's like the market is giving me free money to short this stock. Just wanted to say "THANK YOU VERY MUCH" to all longs, you guys are the best.
    30 Jul 2014, 12:38 PM Reply Like
  • fendermon
    , contributor
    Comments (888) | Send Message
    Ah yes...warm fuzzies all around.
    30 Jul 2014, 01:52 PM Reply Like
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