Sturm Ruger, the largest firearms maker in the U.S. that is publically traded, reported earnings for their fourth quarter that did not meet estimates of analysts for just the first time in 5 years.
Profit per share increased from $1 one year earlier to $1.33, announced the company in a prepared statement on Wednesday. No net income figure was released with the company’s earnings announcement.
The results did not meet the estimates on Wall Street of analysts who were expecting $1.38 per share. Shares dropped by 7.9% in New York to $62.99 a share.
However, Congress has not curbed access to guns and orders during the fourth quarter at Sturm Ruger dropped to their lowest for all of 2013.
One analyst said it was due to weakness overall in the market. Background checks, said the analysts, which can serve as a general guides for sales, have fallen by as much as 50% over the past one to two months.
Most analysts have Sturm Ruger as a buy, while others say to hold the stock and one even says the stock should be sold.
Revenue was up by 28% during the fourth quarter to end at $182 million, said the company in its statement. Sales beat estimates of analysts who had projected sales of $179 million. The company announced a dividend for the quarter of 54 cents which is payable on March 28 for all shareholders on record as of March 14.
The payouts vary from quarter to quarter because they are based upon percentage of the earnings for the quarter rather than a fixed per share amount, according to the statement released by Sturm Ruger. The prior dividend the company had was paid at 58 cents per share.
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