In fact, from a revenues perspective, its likely the prohibition will add considerably to an already substantial
And, remember, the American gun markets already suffer from demand exceeding the available supply, Store shelves across the country are bare, with both Big Box and small retail struggling for inventory. Sector analysts don't expect demand to lessen anytime soon either. They see the move by the DOS doing two things- exacerbate the current supply problems and strengthen an already booming market. Both assumptions play into
Video Link: https://www.youtube.com/embed/GPileCz5ZiI
Adding To Record-Setting Momentum
Moreover, the expected surge in demand to an already booming market is more than good news from a sales perspective, Laws of supply and demand should lead to higher prices, stronger gross margins, and extended sales visibility for AMMO. Even better, with the order expected to remain effective for at least 12-months, AMMO can see these potential benefits within the next few weeks and should last at least for the next four quarters.
Hence, despite AMMO raising its revenue guidance by 12% to
Even its current quarter expectations may be light. That number , too, was raised, with AMMO now expecting to post at least
Bullish Guidance And Optimistic Attitudes
And don't think AMMO isn't bullish on its own future. They are. Comments made during its earnings call earlier this month gave every indication that its company is in hyper-growth mode. Better still, they have substantial growth targets in its crosshairs. They support their optimisitc posture by not only being intimate with the markets on the ground but also from knowing that its Gunbroker.com asset has far more to contribute once fully integrated. Only about
That makes sense, especially noting despite the massive active user base at Gunbroker.com, ammunition sales accounted for only 3% of its revenues last year. Hence, AMMO inherits an enormous revenue-generating opportunity from that group alone. Even better, with
Then, factor in that its new facility is can potentially quadruple production to meet demand from its presence in more than 1600 direct-to-consumer locations, it's almost futile to argue against AMMO's bullish posture. As if that wasn't enough to expose the value proposition, the near-unprecedented levels of new gun permits should strengthen an already strong business tailwind into the next few quarters.
One other thing. AMMO said to expect a potentially big announcement no later than the first part of September. Speculation is that the company is close to inking a major deal in the military and defense sector. It could be a reason why the CEO offered his opinion that AMMO could become a
Hence, there's a lot to like about
Strength To Reach A
Topping the list right now is corporate strength and targeting robust market opportunities. Already a top five ammunition and munitions supplier in the US, AMMO benefits from being a well-respected and trusted supplier of products to law enforcement, military, and consumer markets. That's a consideration not to be underappreciated, especially with billions in military contracts typically up for grabs each year. And while AMMO has grown into its
Further, AMMO proves its worth, expecting to sell upwards of 750 million rounds of ammunition this year. And that's not including a potential near-term military contract that could exponentially increase those totals. Better yet, with AMMO quickly integrating its Gunbroker.com asset, the company is in its best position ever to capitalize on the
Still, consider that just a short term target.
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