Ruger Reports Large Earnings Drop for Q2 2017

I am going to admit, I have been putting off writing this post for a bit because I really hate reporting bad news. Ruger recently announced that they experienced a reasonably significant earnings drop for the second quarter of 2017 translating to smaller payouts for stock holders. Reporting only $299.2 million in net sales this quarter, Ruger just didn’t come close to the same period of 2016 where Ruger reported net sales of $341.1 million.

The ever changing market is in a strange state that we haven’t seen in almost a decade, if not longer. Ruger’s Chief Executive Officer Christopher J. Killoy stated that 29% of the firearms Ruger sold were Mark IV pistols, Precision Rifles, and the LCP II pistol.

The reasonably stagnant AR-15 market is no doubt hurting not only retailers but also manufacturers who were selling huge numbers of America’s most popular rifle. Further complicating things, NICS (National Instant Criminal Background Check System) saw a 7% decrease in overall volume when compared to the second quarter of 2016.

Another factor to the earnings drop is the voluntary recall on the Ruger Mark IV pistols that is expected to cost the company $2.5 million dollars. If you are not familiar with the Mark IV recall, read the whole story HERE.

If you happen to be a financial wiz and can make more sense of the Ruger earnings report, you can find Ruger’s quarterly report on Form 10-Q HERE. If you are interested in the product lineup that Ruger has to offer you can check out the Ruger website for more information. Investors can head over to the Ruger Corporate website for more information and past earnings statements.



Patrick R

Patrick is a Senior Writer for The Firearm Blog and TFBTV Host. He likes guns and has liked shooting guns for as long as he can remember. You can follow Patrick on Instagram @tfbpatrick, Facebook, or contact him by email at TFBpatrick@gmail.com.

The above post is my opinion and does not reflect the views of any company or organization.


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  • Maxpwr

    Still one of the best manufacturers out there with solid and innovative products. Finally got a Precision Rifle this year. Don’t worry, their market sales will increase by Spring 2020 when the ever increasing prospects for a new Congress and President to pass new gun bans will be on the horizon by Fall.

  • Rick O’Shay

    But they *did* have payouts for their stockholders?
    I’m not a finance guy so this is just me talking out my @$$, but it seems like being profitable is still a good thing, even if it’s not as much as you projected. All it means is you can’t see into the future. If I still turned a profit, that’d be a good day for me.

    • Klaus Von Schmitto

      Well yes and no. Not hitting your projected number, even though you’re profitable, tends to drive the stock price down.
      The price of the stock is sometimes not controlled by profit or loss (Facebook, etc) but by investor confidence.
      This is why a lot of really smart people won’t take their companies public even though they could make a ton of money right off the bat. They know that ultimately their companies value can be influenced by a bunch of knucklehead day traders and stock brokers.

      • Rick O’Shay

        Keltec would be a great example of that. They won’t go into debt, and they’re still privately held. It might be overly cautious and people like to rag on them for it, but in my mind’s eye it’s better for their long term financial security than the risks S&W, Ruger or Olin take on. As matter of fact, all three of those publicly traded companies have other components to their financial portfolios besides firearms-associated manufacturing. TFB has covered S&W quite extensively.

  • Dr. Longfellow Buchenrad

    I think “return to normal” is a better way to look at it than “drop.”

    Ruger isnt going anywhere.

    • drambus

      So very much this ^ comment. They are a very strong brand and a household name in the wider firearm community. This is very much a return to normal.

      That’s part of what bothers me about equity markets. No doubt Ruger’s valuation as a company will have been negatively affected, in part due to not being able to generate the kind of positive cash flow they once did. If their books and operations are properly managed, they should objectively be no less secure, it’s just the outright numbers won’t be as high.

      I’ve noticed relatively small (300mm is a small cap company) but well managed companies are often undervalued compared to enormous and perhaps a little mismanaged companies just because the outright numbers involved aren’t as big.

      • James Young

        Investors are forward looking, so they want to see continued growth, and have less interest in a company’s “return to normal”. It’s not necessarily undervalued because it’s market cap is dropping; it’s just a loss of confidence in future growth.

        Ruger may suffer from unavoidable systematic risk coming from decreasing gun sales in the market segment, but they can still increase revenue by fixing the issues with some of their other guns: making the Ruger American pistol competitive, create a proper marketing push for the carry guns like LC9S, giving consumers reasons to buy their revolvers over S&W, getting sub MOA accuracy out of their bolt guns, creating a competitive Mini-14 variant that gives people advantages to buy it over their AR556, changing RPR to MLOK ASAP, bringing back Ruger shotguns, etc, etc, etc.

        TL;DR Fix issues with current guns and create excellent marketing campaigns.

    • Nail. Head. Hit. That’s exactly correct, sir.

  • ShrimplyPibbles

    Can’t fearmonger conservatives into buying tons of guns currently.

    • It’s the Democrats that drive gun sales.

      • Heretical Politik

        Eh… it’s really a symbiotic relationship.

    • James Young

      Now instead of buying guns out of fear, I buy them just for the fun of it

  • pliablemoose

    The last few years were an anomaly, we were fairly sure our 2nd Amendment rights would be further modified by the potential Clinton POTUS and selection of activist USSC judges to fill anticipated vacancies. I know I bought everything I could afford in anticipation of it. I have a bit of a personal surplus and breathed a massive sigh of relief. It’s unfortunate the firearms industry has been affected by all of this. Hopefully, they’ll survive 🙁. Ruger is making some great stuff, I just don’t need anything right now.

  • captain obvious

    The key thing in the report is this….

    “The decrease in estimated sell through of the Company’s products from the
    independent distributors to retailers is attributable to:

    -Decreased overall consumer demand in 2017 due to stronger than normal demand during most of 2016, likely bolstered by the political campaign for the November 2016 elections,

    -Reduced purchasing by retailers in an effort to reduce their inventories and generate cash as they head into the typically slower summer season, and

    -Aggressive price discounting and lucrative consumer rebates offered by many of our competitors”

    In a down market you either have to cut prices or come up with new products to spur sales. If you were going to buy a new gun this year it was hard to pass up S&W and/or other manufacturer’s rebate deals. That certainly hurt Ruger’s sales.

    I am frankly surprised that Ruger hasn’t offered a rebate on some of their core product guns and they haven’t come up with anything new recently.

    I would expect their 3rd quarter sales (mostly summer) will be down as well as I haven’t seen any Ruger discounts this summer. Sales usually go up in the fall for hunting season but again, I’m not hearing of any discounts or new products coming out.

    On the other hand, with Ruger stock prices being down, it might be a good time to get in as they will likely soar if the DemocRats gain seats in the house/senate next year.

    • James Young

      Good point on Ruger not offering rebates or free mags or something. Their guns have mostly gotten cheaper, but so has everyone else’s. They should pick at least one gun they think is competitive and build a marketing campaign and promotion (rebate, mag, etc) around it

  • Kirk Newsted

    What has Springfield Armory reported?

    • Harry’s Holsters

      They are privately held so I doubt we’ll see anything.

  • Gary Kirk

    Little off topic, but would get me buying a couple of their guns… Sell a stripped down RP.., So I can put my own handgaurd, stock, and grip on it for a few hundred $ less..

    • Jai S.

      That’s not a bad idea, but with their volume I bet it would only save just above $100. I doubt people would say no to the hand guards, stock, and grip for that little savings.

    • Christian Hedegaard-Schou

      Seriously? The RPR is the least expensive precision rifle on the market that actually does what it claims, and you still want it cheaper?

      Maybe precision shooting isn’t for you. You’re going to get a shock when you start looking at reloading components.

      • Gary Kirk

        Really?? I can recognise your username.. You can’t mine??

        I have spent more on fitting an action, than a BRAND NEW RPR could ever cost.. So yes, I know what expenses you are going to face even trying to get into the newfound “Precision Shooting Game”.. My comment was meant as a statement that I may potentially purchase a couple of their rifles to build for customers of mine that would like to explore this doctrine of shooting.. And I would prefer to fit the “control interfaces” to the customer.. I will not stoop to the level that you attempted to call me on.. But I guarantee you, I have no issue in spending $1800 on optics for my close quarters rifles.. Or $8200 on my Barrett package (that I’ve since traded the leupold) plus $2300 for an S&B.. Have a couple 300WMs, a 338LM, couple 50s, a 416 Barrett (that is a nasty bastard), 460 Weatherby ( she’s not really long range, but she costs more than the rest)..

    • James Young

      Or Ruger could switch the rail to mlok, use a lower weight stock, and not change the grip because it’s a good grip imo. All that and sell it for the same price. That I’d be interested in

  • EzGoingKev

    Right now I think the AR market is experiencing the race to the bottom.

    • Swarf

      And I’m down here waiting to buy one.

      • Winston Behle

        Me too!

      • Sean

        Me too. Seeing if the price drops below $299

    • JamesDrouin

      No, it’s experiencing “capitalism” in the form of “competition”.

  • aweds1

    “The ever changing market is in a strange state that we haven’t seen in almost a decade, if not longer.”

    Because who was in the White House for 8 of those nearly 10 years? The sales spike was entirely driven by politics.

  • Alan

    Their best salesman left, and his replacement didn’t get the job.

    • RMP52

      Yep, in about 3 years gun prices will double and you won’t be able to buy ammo. Stock up now.

  • Hoplopfheil

    Does this have anything to do with why the Ruger American Pistol was on sale for $250 at PSA a month ago?

    • James Young

      That was a smoking deal. I almost bought it but it sold out before I could

  • Klaus Von Schmitto

    If you think you’ve seen crazy – wait till mid 2020.

    • James Young

      Oh please don’t mention 2020; I’m so tired of presidential campaigns and Facebook comments from coworkers and family members. Wish we could just enjoy life without everything in life becoming political

      • M.M.D.C.

        Amen.

  • Is this a big thing? I don’t think so. The U.S. market is not living under the constant threat of a blanket ban as it has been in the eight years of the previous administration, so sales are experiencing a normal drop. If U.S. companies want to keep up their figures, they need to go two ways:

    • Invest, innovate, come out with new products.
    • Support gun rights advocacy groups outside of the U.S. like they do with Pro-2A groups in their homeland, so to expand export markets.

    And BOTH things need to be done. You can’t just pick one: I can see the U.S. internal market shrinking even further in the next years (the current President is not the most loved, but the counterpart is much less of an option, so I can not see the political tide turning very soon), and investing only on the U.S. market will mean handicapping themselves.

  • Duro Sig

    that’s the problem with this infinite growth business model. never mind how you do it, make more money than last quarter and so on and so forth. you owe it to the shareholders..etc..

  • Gun Fu Guru

    I always wondered what would happen when we weren’t being actively threatened by anti-gun politicians. The answer? We relax and let our guard down.

  • USMC03Vet

    Publicly traded firearm companies are bad. The smart ones should buy back their company and get away from idiot market value especially when you produce a product that is hated by too many people with power to damage your market offerings.

  • Jim_Macklin

    There are no layoffs so business isn’t terrible. People who bought a few ARs and SR1911 or LC9s’s in 4Q 2016 because they were worried about hillary had spent their budget and they were saving up for the April 15 IRS robbery.

  • John Daniels

    “Ruger Reports Large Earnings Drop for Q2 2017”

    Yeah, Ruger and everybody else in the industry. Yawn.

  • Matt Collins

    Am I the only one who’s curious as to what percentage of their earnings is derived from their private-label venture with Polycase for the ARX ammo? I put the over/under at 1-tenth of 1% of total.

  • mazkact

    Whodathunkit, revolvers,.22 auto pistolas and rifles with aluminum stocks would be the best sellers in 2017.

  • JamesDrouin

    Not “bad news” at all … just capitalism, aka “competition” at work. And the dividend, despite the news, isn’t bad either (~4.5% of the share price).

  • Obama was the best gun salesperson the country ever “enjoyed”. He’s gone. Hillary’s gone. Gun sales have dropped off. They’ll be back up the next time a democrat gets into the White House.

  • The Brigadier

    Before the election last year gun buying was at a fever pitch, because the lying media kept saying that Hillary was leading over 12 points. She had stated that the first thing she was going to do as president was outlaw military looking carbines. Everyone was in a panic and billions of dollars were spent on even more weapons and ammo the first 10 months of 2016. After Trump took his oath, the reality that the wicked witch of the Midwest had lost finally sunk in. The gun buying mania collapsed. It’s not only Ruger in trouble. Colt has started laying off employees and so has practically every other weapon manufacturer. Now is the time to buy, because everywhere you look, deep discounts are being offered. Unfortunately everyone spent their wads last year. Hey maybe we can get Hillary to run again and she can start campaigning next year! That should fire up the mania again!

  • Maudlean Spires

    Wasn’t this about the same time that Smith and Wesson had their rebate program going? Time for Ruger and some of the other manufacturers to do the same thing. S and W sold a lot of guns during their program. I bought one and would gladly buy a Ruger if they offered some rebates and made an offer that was so good that I couldn’t refuse.

  • Anon. E Maus

    I think it’s actually completely natural.
    During Obama’s reign of terror, the industry was in maximum gear, demand and production was high.

    Now, the fear has died down, and demand has been going back to normal, and I think it would actually be rather rational for all these big companies to size themselves accordingly.

    Ruger hit fantastic heights this past decade, and it’s not just the panic, they’ve done all the right things, O’Fiefer really turned them into a powerhouse.