AMMO, Inc. (NASDAQ: POWW, POWWP) reports earnings after the bell on Monday. What should investors expect? Record earning and bullish guidance.
After all, AMMO management has already given the clues, suggesting they will post a record best $55 million in revenues for in the quarter. What’s more, the markets have gotten even stronger since then, with the current administration in the states being the best gun sales team since the Barack Obama days. Thus, while POWW’s more than 16% gain in November is impressive, it may be the precursor for better things to come. Notably, on a more than $200 million run rate, that’s likely.
In fact, from the trading pattern over the past eight weeks, investors are indeed bullish. On Friday, shares are surging to two-month highs, reaching $7.29 intraday, a level not touched since the start of September. Moreover, volume indicates that investors are taking advantage of an apparent valuation gap, scooping up shares at higher prices and pace over the past two weeks. Investors may have good reasons to be bullish ahead of the call, especially after AMMO increased revenue guidance and included optimistic commentary heading into the quarter and for the remainder of 2021.
Their bullish posture stems from an expected doubling in some areas of production and a quadrupling in others. That’s good news when facing near-record demand for guns and ammunition. That’s not all.
Record-Setting Performance Expected
Demand is getting stronger after the U.S. recently put an embargo on Russian ammunition imports. Better still, enhanced integration of GunBroker.com to its sales mix is expected to add potentially exponential revenue-generating firepower. AMMO noted in its prior call that only about 3% of GunBroker revenues, about $12 million, came from the sale of ammunition. Hence, targeting that six million member base could lead to a substantial rise in revenues resulting in a massive return on its $190 million acquisition/investment.
Moreover, investors should get a detailed update on how AMMO can meet the record demand for its products. Of interest will be how AMMO benefits from consolidating manufacturing operations this past April in its Manitowoc, Wisconsin plant. Following up on past guidance, AMMO can add more details on how doubling its priming and loading capacity and increasing its brass manufacturing capacity by at least 15% will impact future revenue generation. Moreover, guidance may also include an update for planned additional production enhancements to meet an even sharper rise in demand.
Also of interest will be a discussion about AMMO’s penetration into the military markets. In September, AMMO announced being awarded a contract from the Irregular Warfare Technical Support Directorate (IWTSD), operating under the U.S. Department of Defense. That order is for AMMO to design and manufacture signature-on-target rounds (SoT) to support U.S. military operations. Although revenue details may be embargoed for security reasons, investors should get a feel for how that contract can impact both near and long-term revenues. Military ammunition contracts can range from thousands to millions and well into the billions for specialized weaponry like AMMO provides.
Guidance in The Crosshairs
Also in the queue should be an update on how AMMO is doing on its wholesale and retail trade. As noted, its new facility is designed to quadruple production to meet demand from its presence in more than 1600 direct-to-consumer locations. Further, revenues are expected to increase currently and going forward from its combined $32 billion in sales opportunities from its core target markets, including military, sports, law enforcement, and retail markets.
Of course, investors will also pay attention to its financial condition. That’s expected to remain strong, with AMMO exiting last quarter in its best operational position in history. Hence, that metric may be even more robust with expected record sales combined with enhanced equipment, technology, and manufacturing strength.
Indeed, put the AMMO earnings call into your listening crosshairs. At a roughly $790 million valuation, there is considerable room for growth. And with AMMO, Inc. habitually beating its already revised-higher estimates, pulling the investment trigger ahead of the call may be a wise consideration. Record revenues supported by bullish guidance are usually not a sell-the-news event.
Conference Call details:
Monday, November 15th, 2021- 5:00pm est.
Investors interested in participating in the live conference call or audio-only webcast, may join by dialing 1-877-407-0789 (domestic), 1-201-689-8562 (international), or via webcast using the following link:
(https://viavid.webcasts.com/starthere.jsp?ei=1504119&tp_key=f257080dbd).
Please join at least 5-10 minutes prior to the scheduled start and follow the operator’s instructions. When requested, please ask for “AMMO, Inc. Fiscal Second Quarter 2022 Earnings Call.”
Disclaimers: Level3Trading is responsible for the production and distribution of this content. Level3Trading is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Level3Trading is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Level3Trading be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Level3Trading, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Level3Trading strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, Level3Trading, its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found Level3trading.com/disclaimer.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Media Contact
Company Name: Hawk Point Media
Contact Person: Ken Kellis
Email: info@hawkpointmedia.com
Phone: 3057806988
City: Miami Beach
State: Florida
Country: United States
Website: https://ammoinc.com/
