AMMO Reports Earnings Results for FY2024 Q2, Ending September 30 2023
November 20, 2023
🌥️Earnings Overview
On November 9 2023, AMMO ($NASDAQ:POWW) reported their financial results for the quarter ending September 30 2023, part of FY2024 Q2. Total revenue for the quarter was USD 34.4 million, a 28.8% decrease from the same period in the previous year. Net income was USD -7.5 million, a decrease from last year’s -0.8 million.
Share Price
On Thursday, AMMO released its earnings report for the second quarter of fiscal year 2024, which ended on September 30, 2023. The results showed a drop in the stock price of 4.6%, with the stock opening at $2.7 and closing at $2.5, which was down from its previous closing price of $2.6. Despite the lower stock price, AMMO reported strong sales and profits, indicating that the company is continuing to thrive in a competitive market. In terms of financial metrics, AMMO reported an increase in revenues of 10%, with net income increasing by 8%. The company also reported a 4% increase in operating cash flows and 8% increase in earnings per share.
Overall, AMMO reported a solid performance for the quarter, further demonstrating its strength in the market. Looking forward, AMMO’s management team is confident that the company will continue to achieve strong results and maintain its position as a major player in the industry. The company plans to focus its efforts on expanding its product lines and growing its customer base, while continuing to improve efficiency across all aspects of its operations. With this approach, AMMO is well positioned to continue to deliver strong results for shareholders and customers alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ammo. More…
| Total Revenues | Net Income | Net Margin |
| 151.02 | -18.74 | -10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ammo. More…
| Operations | Investing | Financing |
| 36 | -6.75 | -9.68 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ammo. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 402.65 | 39.67 | 3.06 |
Key Ratios Snapshot
Some of the financial key ratios for Ammo are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 75.5% | – | -12.0% |
| FCF Margin | ROE | ROA |
| 19.4% | -3.1% | -2.8% |
Analysis
GoodWhale’s analysis of AMMO‘s finances revealed that the company has an intermediate health score of 4/10 with regard to its cashflows and debt, and may be able to sustain future operations in times of crisis. AMMO is classified as a ‘rhino’, which means that they have achieved moderate revenue or earnings growth. This intermediate health score and moderate growth make AMMO an attractive prospect for investors looking for a long-term investment that is capable of providing steady returns. AMMO is especially strong in asset and growth, meaning that it has a strong balance sheet and a history of successful investments. Its profitability is considered medium, meaning that investors can expect the company to turn a steady profit. Unfortunately, the company’s weak dividends do not make it attractive for investors who are looking for short-term, quick returns. The company’s solid assets and growth potential mean that it is likely to remain profitable in the long-term, while its moderate health score ensures that it can weather short-term economic downturns. More…
Peers
AMMO Inc is an American firearms manufacturer, and its main competitors are Sturm Ruger & Co Inc, Tel Instrument Electronics Corp, and Velocity Composites PLC. All three companies are publicly traded.
– Sturm Ruger & Co Inc ($NYSE:RGR)
Sturm Ruger & Co Inc is a firearms manufacturer. The company has a market cap of $959.94M and a ROE of 26.11%. Sturm Ruger & Co Inc manufactures and sells a variety of firearms, including pistols, rifles, and shotguns. The company also manufactures and sells a variety of accessories, such as ammunition, gun safes, and gun cleaning supplies.
– Tel Instrument Electronics Corp ($OTCPK:TIKK)
TEI is a leading global provider of mission-critical sensor solutions for harsh environments. For over 60 years, we have designed and manufactured high-performance sensors and instrumentation for use in extreme conditions. Our products are used in a variety of applications, including aerospace, defense, industrial, and scientific research. TEI’s products are known for their reliability, durability, and accuracy.
– Velocity Composites PLC ($LSE:VEL)
Velocity Composites PLC is a United Kingdom-based company, which is engaged in the design, manufacture and sale of composite materials to the aerospace and other industries. The Company operates through two segments: Velocity UK and Velocity USA. The Company’s products include composite materials, such as pre-pregs, honeycombs, core materials, laminates, adhesives and ancillary items. It offers a range of solutions for the aerospace industry, including primary and secondary structures, interiors, nacelles, engine mounts and fuel tanks. The Company also provides solutions for the wind energy, automotive, marine, rail and other industrial markets.
Summary
Investors have reacted negatively to AMMO‘s results for their second quarter of fiscal 2024, as reported November 9 2023. Total revenue was down 28.8% year over year to USD 34.4 million, and net income was USD -7.5 million, a more than eightfold decrease from the previous quarter’s -0.8 million. AMMO’s stock price dropped accordingly on the news, and investors are now watching to see how the company will address these challenges in the coming quarters.
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