In the following video, Motley Fool consumer goods analyst Blake Bos tells investors that, while Sturm, Ruger & Co. did beat estimates, it's a lot more important for understanding the company in the long-term to take a look at the internal metrics. He talks about the company's ability to expand its sales and revenue, and grow its margins, and return a lot of that excess cash to shareholders through dividends rather than share repurchases. He also tells us that the company still struggles with supply shortages. He then takes a look to the future and informs us that this insane demand will eventually taper off, and what investors should do when it does.
More Great Advice from the Motley FoolThe Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report,"The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.
The article Sturm, Ruger & Co. Earnings: Is the Arms Race Over? originally appeared on Fool.com.
Blake Bos owns shares of Sturm, Ruger & Company. The Motley Fool owns shares of Sturm, Ruger & Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.