)
Overview
<ul>
<li>U.S. firearms maker’s Q1 net sales rose 4.1% yr/yr, fourth straight quarter of sales growth</li>
<li>Adjusted EPS for Q1 fell to $0.27 from $0.46, impacted by non-recurring expenses</li>
<li>New products accounted for 41% of firearm sales in the quarter</li>
</ul>
Outlook
<ul>
<li>Company expects 2026 capital expenditures to total $30 mln</li>
<li>Company says temporary expenses are expected to roll off, improving earnings visibility</li>
<li>Sturm Ruger remains focused on improving cost structure and profitability</li>
</ul>
Result Drivers
<ul>
<li>NEW PRODUCT SALES - New products, including recently introduced rifles and shotguns, accounted for $51.6 mln, or 41%, of firearm sales in Q1</li>
<li>NON-RECURRING EXPENSES - Q1 profitability was impacted by $3.2 mln in legal and advisory fees related to the Beretta agreement and $2.5 mln in severance costs from a reduction-in-force</li>
<li>RETAIL DEMAND - Estimated sell-through of products from distributors to retailers rose 3.2% yr/yr, outpacing the 1.6% increase in adjusted NICS background checks Company press release:</li>
</ul>
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
<h3>Q1 $140.90</h3>
Firearms mln
Sales
<h3>Q1 EPS $0.01</h3>
Q1 Gross $28.08
Profit mln
<h3>Q1 -$1.95</h3>
Operatin mln
g Income
Analyst Coverage
<ul>
<li>The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 1 “strong buy” or “buy”, 1 “hold” and no “sell” or “strong sell”</li>
<li>The average consensus recommendation for the recreational products peer group is “buy”</li>
<li>Wall Street’s median 12-month price target for Sturm Ruger &amp; Company Inc is $45.50, about 8.9% above its May 5 closing price of $41.77 For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)</li>
</ul>

Sturm Ruger Q1 sales driven by new products, bottom line hit by one-off costs