Skip to main content

AMMO Inc. Raises FYQ2 Revenue Guidance to $51 Million, Expecting A Year-Over-Year Increase Of 400% As Revenue-Generating Momentum Builds (NASDAQ: POWW)

AMMO Inc. (NASDAQ: POWW) is not following the broad market sell-off. In fact, in sharp contrast, shares traded higher by 5% earlier this week following bullish guidance that has set expectations for its FYQ2 revenues to reach $51 million in sales. Better still, that quarter, ending September 30, 2021, sets the stage for more accelerated growth into the back half of the year, with POWW expecting revenue-generating traction to continue across its entire business platform. In fact, AMMO said it expects to deliver "at least" that much in the quarter, leaving the door open to better-than-expected results. Investors appear to like the terminology. 

After all, at $51 million, that represents a year-over-year increase of 400%, attributed in good part to its transformative acquisition of, which brings roughly six million registered users into its revenue-generating crosshairs. Still, overall growth isn't just from 

In its guidance, the company made clear that its improved outlook reflects strong demand across its entire portfolio of high-performance products taking advantage of its aggressive marketing strategy, expanding capacity, and, yes, its progress on its integration.

Keep in mind, too, the revised-higher guidance comes after AMMO's already published year-end report 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 $4.8 million over the same period last year. Better yet, AMMO delivered an adjusted EPS of $0.04, a more than 167% increase over last year.

And if that isn't enough to inspire interest, AMMO's FYQ2 results are expected to follow potentially record-setting momentum from its first quarter that ended in June, which is expected to post at least $44 million in sales. Thus, while the sequential Q over Q growth is impressive, the expected 400% YoY increase attracts substantial investor attention as well. 

And deservedly so. 

Video Link:

Guidance Follows An Already Extraordinary Period Of Growth

In fact, AMMO's most recent guidance follows an already extraordinary period of growth. Better still, its growth isn't segmented; it's a result of strengthening revenue-generating traction throughout its business that drove a 300% increase in sales to $62.5 million, a 173% increase in gross profit margins, EBITDA of $8.1 million, and a 150% increase to adjusted EPS increase to $0.07 in FY 2020. Even better, AMMO has shown every indication that it's locked and loaded for growth. 

In fact, the company, and its investors, are yet to see the full impact from its $240 million transformative acquisition of, which is expected to push revenues toward $190 million this year. However, as integration continues, expect those revenues to show a more emphatic presence. Better still, the ammunition and munitions markets are aligned with AMMO's vision to contribute significantly to growth in the near term.

In fact, expect AMMO to benefit from near-unprecedented US demand for ammunition, which is showing no signs of slowing down. In fact, current gun permit applications are soaring to near all-time highs, with political rhetoric driving consumers to the markets. Moreover, AMMO's new state-of-the-art facility, expected to be fully operational in about a year, will enable AMMO to capitalize on multiple revenue-generating opportunities by seizing upon new market opportunities. In fact, the company already said it plans to maximize the potential from its upgraded facility through cutting-edge design and contracts to design and manufacture technologically advanced ballistic match ammunition for the US Department of Defense.

Keep in mind, too, that ammunition sales to's roughly six million active users accounted for only about 3% of its revenues. Thus, AMMO can inure from an integrated consumer market and allow them to capitalize on its expertise to deliver potentially exponential growth from that user base alone. 

And while is helping to send revenues soaring, there's plenty more demand from its other markets. And that makes the current $7.40 a share price a compelling investment opportunity. 

Demand From Multiple Big-Ticket Markets

In fact, its blowout FYQ4, triple-digit percentage YoY increase, and expected surge in FYQ1 and FYQ2 aren't all related by any means. AMMO had established itself well before that acquisition closed. That deal only made them substantially stronger.

This year, AMMO expects to deliver upwards of 750 million rounds of ammunition to a diverse list of customers. Better yet, that number can be significantly higher as the company targets its active user base and retail and wholesale consumers through its broad online and brick-and-mortar product placements. 

Already, AMMO expects to drive revenue growth from having products available in more than 1600 retail locations. And with its soon completed manufacturing facility expected to triple its production capacity, its ability to increase its already impressive market presence will grow. In fact, through its multi-channel distribution network, AMMO is effectively targeting a more than $32 billion market from law enforcement, military, and sports markets. The better news is that the revenues they generate from these substantial markets are high-margin contributions.

Keep in mind, too, AMMO will benefit from surging demand causing sold-out store shelves and order backlogs for AMMO. In fact, AMMO already told the markets that its ammunition backlog increased by 125% in less than six months. Better still, from a revenue pipeline perspective, as AMMO fills those orders, expect them to get replenished from marketing and operational initiatives that connected them with more than 67,000 dealers, added over 1,000 new customers, and processed over $80 million in booked orders last year. 

Those efforts add to its revenues expected from its direct sales channels, with roughly 1,600 retail placement locations, including DICK'S Sporting Goods (NYSE: DKS) and Cascade Farm and Outdoor leading that charge.

Hence, weak broader markets may be hitting AMMO shares entirely too hard. In fact, not only is the ammunition sector booming, with the economy strengthening, that trend is likely to accelerate. And it all bodes well for AMMO, Inc.

Don't Let The Weak Markets Disguise Opportunity

Thus, while the weak broader markets may have taken AMMO shares lower in sympathy, expect fundamentals and a compelling growth story to soon win back its appropriate valuation. In fact, its share-price-to- revenues multiple is absurdly low at current levels and is clearly exposing a massive near and long-term investment opportunity. Admittedly, no stock goes straight up. The good news there, however, is that when good stocks are taken lower indiscriminately, value opportunities arise. And AMMO stock is presenting one.

Hence, while its YoY growth is indeed impressive, so is its guidance. And for wise investors that trade with forward-looking bias, AMMO stock may be offering one of the best values in the ammunition sector. And its $190 million in expected year-end sales not only shows that AMMO is already playing in the big leagues but it also enables them to accelerate its initiatives to capitalize on and enhance enormous market opportunities. 

Thus, current prices may be offering the second chance that investors hoped for as the stock puts its 52-week high of $10.37 back in its crosshairs, putting a gain of more than 40% in focus.  

And with AMMO, Inc. continuing to raise its already bullish guidance to potentially record-setting levels, the return to those highs may come much sooner rather than later, and provide refuge from a disjointed market.


Disclaimers: Hawk Point Media Group, LLC. (Hawk Point Media) is responsible for the production and distribution of this content. Hawk Point Media 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 Hawk Point Media 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 Hawk Point Media 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 Hawk Point Media, 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. Hawk Point Media 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, Hawk Point Media, 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 by clicking HERE.

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: KL Feigeles
Phone: 3057806988
City: Miami Beach
State: Florida
Country: United States

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.