BUZZ-Firearms maker Sturm Ruger jumps after higher Q4 rev, earnings, raised dividend

Shares of Sturm, Ruger RGR.N up 11.8% to $39.65 on Thurs and tracking best session in four years after Q4 results

Stock hits over three-month high and on pace for biggest one-day pct gain since Jan 6, 2021, the day President Donald Trump's supporters stormed the Capitol

Southport, Connecticutt-based firearms maker late Weds reported Dec-qtr net sales of $145.8 mln, up from $130.6 mln a yr-ago, while earnings increased by 4 cents to 62 cents/sh

Co also announced qtrly dividend of 24 cents, up from prior payout of 11 cents

The dividend varies each qtr as co pays a percentage of earnings rather than a fixed amount. This dividend represents ~40% of net income, co said

"We were pleased with our sales growth and improved profitability in the fourth quarter, despite the apparent reduction in consumer demand, as adjusted NICS checks decreased 6% from the prior year," CEO Christopher Killoy said in statement

NICS is the Federal Bureau of Investigation's National Instant Criminal Background Check System that determines if someone can purchase a firearm. Although NICS checks do not directly correlate to sales, they serve as the best barometer of Americans' volume of purchases

In the past, gun makers have seen sales rise ahead of presidential elections amid concerns potential gun control legislation could restrict access to firearms

Lake Street Capital Markets is the only Wall Street brokerage covering RGR with a "buy" rating and $46 PT, per LSEG

RGR shares shed 22% of value in 2024, registering their third consecutive yearly loss