Better still, AMMO's own guidance gives investors every right to be bullish. In fact, AMMO's optimism is fueled by momentum from its year-end report that posted a 409% increase in comparative revenues, increased gross profit margins by 179%, cut operating expenses as a percentage of sales by 58%, and posted a 296% increase in EBITDA to
The story gets even better, with AMMO expecting to report its first positive net income quarter. Moreover, AMMO added to its bullish commentary, pointing toward expectations to post a 354% year-over-year revenue increase that includes its raised guidance to deliver
The more excellent news is that AMMO's guidance follows an extraordinary period of growth during FY 2021.
Video Link: https://www.youtube.com/embed/GPileCz5ZiI
Momentum Into FY2022
The best news is that AMMO is experiencing growth throughout its business, contributing to a 300% increase in sales to
In fact, its triple-digit percentage gains didn't get the full impact of its
Moreover, its acquisition of Gunbroker.com arguably puts AMMO in its best operating position ever. Indeed, they showed a glimpse of that by reporting its best quarterly performance in company history. Still, as noted, they expect those numbers to get even better.
That's because AMMO is targeting near-unprecedented US demand for ammunition, showing no signs of slowing down. Moreover, its new state-of-the-art facility, expected to be fully operational in about a year, will add resources that enable AMMO to fuel revenue-generating opportunities. Already, AMMO plans to maximize the potential from its upgraded facility through cutting-edge design and its announced contract to design and manufacture technologically advanced ballistic match ammunition for the
In fact, those opportunities can be massive, noting that despite Gunbroker's 6 million active users, ammunition sales account for only about 3% of its revenues. Thus, with ammunition being AMMO's specialty and expertise, an opportunity for potentially exponential growth is created through that asset alone. And the company expects to seize that opportunity by marketing directly to that massive consumer audience.
Still, there's much more to like going forward. And the consolidation at the
In fact, its blowout FYQ4 and YTD results aren't all Gunbroker. AMMO is already a substantial player in the sector. This year, AMMO expects to deliver over 750 million rounds of ammunition to a diverse list of customers. And keeping in mind that the massive Gunbroker.com active user base is wide open to accelerate ammunition sales, its position should get even stronger.
Better still, AMMO anticipates having products available in more than 1600 retail locations, with its soon completed manufacturing facility expected to triple its production capacity. That's excellent news, especially noting that its multi-channel distribution network directly targets a more than
Moreover, investors can't undervalue the potential created by the surge in gun permit applications and background checks through June, which analysts expect to continue into the back half of the year. In fact, with political debate ongoing, that trend could accelerate. Already, surging demand has caused sold-out store shelves and order backlogs for AMMO
In a previous update, AMMO noted that its ammunition backlog increased by 125% in less than six months. And while that's an impressive stat, keep in mind that this year AMMO will benefit from marketing initiatives that connected them with more than 67,000 dealers, added over 1,000 new customers, and processed over
Better still, the company expects to generate substantial new revenues from its direct sales in roughly 1,600 retail placement locations, including
An Opportunity In-Play
Thus, while its 409% revenue increase last year is impressive, the company is set up to crush those numbers in the future. In fact, guidance to reach
Better still, with AMMO having a history of beating expectations and now even raising guidance, the value opportunity, even at recent highs, is compelling.
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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.
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