Ammo up 19% on sales growth
The Arizona-based manufacturer notched $0.03 in earnings per share, missing estimates by $0.01. Meanwhile, a 37.7% decline in revenue year over year to $43.68M, exceeding estimates by $6.48M. GunBroker Marketplace revenue rose to $16.7M in the quarter as new user growth averaged 40,000 per month.
“[W]e believe the increase in production capacity at our state-of-the-art Wisconsin plant, coupled with the continuing enhancement rollout to the GunBroker.com Marketplace site, has positioned our Company to effectively navigate current market-wide headwinds resulting from the current inflationary and recessionary drivers impacting the consumer,” CEO Fred Wagenhals commented. “We are primed to take hold of these opportunities. The addition of our newest executive management team member, Jared Smith, President & COO, supports the high level of confidence I have in AMMO’s future.”
Smith joined the company at the start of 2023, moving to the company after holding a number of roles at Fiocchi of America.
The company ended the quarter with a cash balance of $39.1M and $54.34M in inventories, down $12.8M sequentially. The company expects leaner margins to support margin expansion in coming quarters.
Shares of AMMO Inc. (POWW) rose 19.62% after the bell on Wednesday.