Gun manufacturers start to misfire as Sales begin their decline, competitors massive discounts and less people are applying for licenses. But remember, gun sales are majorly an emotional buy so wait for the next knee jerk reaction to see those sales figures increase
Or is it because everyone feels safe with a GOP POTUS- PB/TK
What’s Happening To Gun Stocks In America? – By Rich Smith / Aug 4 2017
Shares of gunsmith Sturm, Ruger (NYSE:RGR) stock are down 10.4% as of 11:40 a.m. EDT, after clawing their way back out of a 13.3% hole earlier in the morning.
Sturm, Ruger released its fiscal second-quarter 2017 earnings news yesterday evening after close of trading. The company reported earning $0.57 per share on sales of $131.9 million. That doesn’t sound so bad without context, but here’s the thing: Analysts had been looking for Ruger to report $1.11 per share in profits, so the company missed Wall Street’s target by nearly 50%.
Even worse, sales were down 22% from last year’s $167.9 million, and profits were off by more than 50% from the $1.22 a share that Ruger had earned by this time last year.
So cue the puns about an earnings “misfire.”
Bad as this news was, it could get worse. Sturm, Ruger CEO Christopher J. Killoy blamed “unfavorable de-leveraging of fixed manufacturing costs due to the decline in production volumes” for the declines. In other words, it costs money to buy machines to make guns, and if those machines aren’t run at full capacity, it’s hard to make back the money spent on them — that is, earn a profit. With sales down, Ruger wasn’t able to operate at full capacity, hence it didn’t earn as much profit.
Continue to ibtimes.com article: http://www.ibtimes.com/whats-happening-gun-stocks-america-2574562
