Business is good. Beyond its record-setting revenues, AMMO also has a backlog of orders that reached
Keep this in mind, too. While ammunition exports to
Moreover, analysts expect this aggressive move by the
Best of all, at least for AMMO, once the full effect of the policy is realized, expect more ammunition shortages, higher prices, and a potential rush for gun owners, and prospective ones, to secure equipment and supplies ahead of the order. With the mandate expected to commence on
Hence, AMMO's guidance for
Restricting Imports Adds Fuel To Growth
In addition to putting another revenue beat in its sights, the expected surge in demand could lead to an expansion of already impressive gross margins, making AMMO's expected
By the way, results for FYQ2 will follow a record-setting quarter for both revenues and EPS, where AMMO posted a NET INCOME of
And guidance is strong. Management increased its Q2 guidance by 12% and noted sales momentum is active into the current quarter from core ammunition sales were up more than three-fold. Notably, more than
Also of note, 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. Investor eyes should remain on that target.
Of course, demand is only valuable to companies that can meet it. AMMO can. They are near completion of a new facility that can add 4X the production capacity from current levels. Thus, the
Ammunition Markets Stressed
Moreover, from a more macro market view, the ammunition shortages across
Better still, when its new facility is running at full capacity, AMMO will meet demand running from its retail presence in more than 1600 direct-to-consumer locations. Further, its integration of Gunbroker.com and targeting its roughly six million active users positions AMMO for a transformational surge in revenues.
Also notable to future revenue expectations for AMMO is that 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 captured market alone. Even better, tapping into even a small percentage of that six-million-member group could deliver substantial revenues.
In fact, based on an article published in
Still, while the above presents a massive blue-sky opportunity, AMMO is no small player despite its small-cap share price. Its transformational
Growing Wholesale and Retail Client Base
In fact, AMMO is already considered a top-five supplier, targeting law enforcement, military, and consumer markets with competitive passion. Further, its direct-to-consumer sales model combined positions AMMO to sell more than 750 million rounds of ammunition this year. And that's not including a potential near-term military contract that could exponentially increase those totals within the next thirty days. The combined market opportunity from those three targets alone presents a more than
Thus, AMMO stock remains a bargain despite its impressive gain on Monday. And with news of ammunition markets tightening, its 52-week high of
Better yet, with AMMO posting record sales, highest ever profits, and a backlog that is near
Thus, even for investors that missed AMMO's 115% YTD gain, there's plenty of upside in the stock. And with the
Bottom line- for investors that look for value and buy growth, AMMO stock should be in the crosshairs. More importantly, with the company accelerating its revenue and EPS growth considerably, pulling the trigger on that consideration sooner instead of later may be a wise decision.
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