14. Earnings Per Share

 

Set forth below is a reconciliation of the numerator and denominator for the basic and diluted earnings per share calculations for the periods indicated:

 

Year ended December 31,   2025     2024     2023  
                   
Numerator:                        
Net (loss) income   $ (4,391 )   $ 30,563     $ 48,215  
Denominator:                        
Weighted average number of common shares outstanding – Basic     16,235,995       17,088,205       17,676,955  
Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans           181,896       134,263  
Weighted average number of common shares outstanding – Diluted     16,235,995       17,270,101       17,811,218  
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Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 17, 2021
2019Feb 20, 2020
2018Feb 20, 2019
2017Feb 21, 2018
2016Feb 22, 2017
2015Feb 24, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.