Sturm Ruger Shares Fall After Big Earnings Miss

By Wallace Witkowski Markets MarketWatch Pulse

Sturm Ruger & Co shares dropped in the extended session Wednesday after the gun maker's quarterly results fell below Wall Street estimates. Sturm Ruger shares sunk 13% to $50.10 after hours. The company reported second-quarter net income of $10.2 million, or 57 cents a share, compared to $23.5 million, or $1.22 a share, in the year-ago period. Revenue fell to $131.9 million from $167.9 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of $1.11 a share on revenue of $159.6 million. In a statement, the company cited softer demand in 2017 "due to stronger-than-normal demand during most of 2016, likely bolstered by the political campaigns for the November 2016 elections." Following Sturm Ruger's results, shares of Smith & Wesson parent American Outdoor Brands Corp. declined 5.9% to $19.80 after hours.

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