NASDAQ$POWW

Ammo Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to softening ammunition markets but showed improvements in gross margin and strong cash flow.

AMMO, Inc. reported first quarter fiscal 2024 results with a decrease in revenue to $34.3 million compared to $60.8 million in the prior year quarter, primarily due to decreased sales in the ammunition segment. However, the company saw improvements in gross margin and generated $13.0 million in cash from operations. The company reported a net loss per share of $0.02 or adjusted net income per share of $0.05.

  • Gross margins increased due to a shift in sales mix and benefits from a leaner operating model.
  • Casing sales increased to $6.2 million, up from $3.3 million in the prior year period.
  • Marketplace revenue was $13.9 million for the reported quarter.
  • The company repurchased approximately 739,000 shares of its common stock during the quarter.

Headline financials

Total Revenue

$34.3M

Previous: $60.8M-43.6%
EPS (adj)

$0.05

Previous: $0.09-44.4%
Adjusted EBITDA

$6.6M

Previous: $10.6M-37.7%
Capital Expenditures

-$1.31M

Previous: -$5.26M+75.0%
Free Cash Flow

$11.7M

Previous: -$52.4K+22407.0%
Net Income

-$1.09M

Previous: $3.25M-133.6%
Operating Income

-$1.68M

Previous: $5.06M-133.2%
Gross Profit

$14M

Previous: $18.1M-22.7%
Cash & Equivalents

$47.5M

Previous: $20.9M+127.3%
Total Assets

$408M

Previous: $422M-3.3%

Revenue & EPS history

Ammo · Revenue · Quarterly

$34.3M

Q1 2024-43.6%vs Q1 2023
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Forward guidance

The company is rolling out beta testing for its payment platform on GunBroker.com, with a formal launch expected by the end of the quarter. The cart platform for GunBroker.com is expected to launch by the end of the fiscal year.

Tailwinds

  • Improvements to marketplace GunBroker.com are underway.
  • Beta testing for payment platform is in progress.
  • Formal launch of payment platform expected by the end of the quarter.
  • Cart platform for GunBroker.com is on pace for launch by the end of the fiscal year.
  • Company feels confident in its financial position.

Headwinds

  • The company faces headwinds due to softening in the US commercial ammunition markets.
  • Revenue decreased due to a decrease in sales activity from the ammunition segment.
  • There were approximately $2.8 million of nonrecurring legal expenses incurred in the first fiscal quarter.
  • Without the nonrecurring legal expenses, the company would have generated a profit for the quarter.
  • Consumer currently faces major economic challenges

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-2.0%

Avg return

Earnings day

-3.1%

Avg return

5 days after

-4.4%

Avg return

30 days after

33%

11 / 33 earnings

Positive

+16.2%

Q3 2018

Best reaction

-28.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-0.5%+5.4%
Q3 2026+7.1%+12.5%+20.2%
Q2 2026+5.6%+9.8%+27.6%
Q4 2025-3.4%-3.4%-2.0%
Q1 2026+0.9%+12.3%+26.3%
Q2 2025-2.4%-21.5%-24.4%
Q3 2025-5.2%-12.6%-27.2%
Q1 2025-3.8%-7.6%-10.8%
Q4 2024-28.1%-24.9%-33.3%
Q3 2024+16.2%+13.0%+14.8%
Q2 2024-17.1%-14.8%-23.2%
Q1 2024+1.0%-1.0%+0.0%
Q4 2023+12.4%+9.0%+1.9%
Q3 2023-11.9%-6.3%-15.8%
Q1 2023-20.5%-27.1%-39.5%
Q4 2022-6.1%+1.2%+19.0%
Q3 2022+1.7%-10.9%-1.5%
Q2 2022-2.5%-10.8%-20.2%
Q1 2022-0.7%+0.0%-10.9%
Q4 2021+14.8%-5.2%-12.7%
Q3 2021-15.7%-17.4%-38.4%
Q2 2021-0.9%-0.9%+52.8%
Q1 2021-10.7%-10.7%-12.5%
Q3 2020+9.2%+9.2%+12.8%
Q2 2020-16.4%-6.7%+6.7%
Q1 2020-2.5%+0.0%-14.0%
Q4 2019-0.9%-5.0%-9.9%
Q3 2019-1.6%-8.0%-17.3%
Q2 2019-0.6%-11.0%-4.8%
Q1 2019-3.0%-14.0%-24.7%
Q3 2018+16.2%+18.2%+20.1%
Q4 2018+5.6%+18.9%+33.3%
Q3 2017-3.3%+8.3%-33.3%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2010
Q2 2010
Q1 2010
Q4 2010

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