AMMO Inc Reports Q1 Fiscal 2025 Financial Results
Intellectia.AI Updated: 1970-01-01
AMMO, Inc. Reports Q1 Fiscal 2025 Financial Results
AMMO, Inc. (NASDAQ: POWW, POWWP), owner of GunBroker.com and a leading producer of high-performance ammunition, reported its Q1 fiscal 2025 financial results for the period ended June 30, 2024.
Key Financial Metrics
| Metric | Q1 FY25 | Q1 FY24 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $31.0M | $34.3M | -9.62% | $33.5M |
| Earnings per Share (EPS) | -$0.07 | -$0.02 | -250.00% | -$0.03 |
| Adjusted Net Income per Share | $0.01 | $0.05 | -80.0% | - |
| Adjusted EBITDA | $2.0M | $6.6M | -69.70% | - |
Interpretation: AMMO experienced a decrease in total revenue and earnings per share year-over-year. The revenue fell short of the Wall Street consensus estimate of $33.5M, coming in at $31.0M. Adjusted net income per share and adjusted EBITDA also dropped significantly compared to Q1 FY24. The financial performance reflects macroeconomic challenges impacting both the ammunition and marketplace segments.
Segment Revenue Performance
| Segment | Revenue Q1 FY25 | Revenue Q1 FY24 | YoY Change |
|---|---|---|---|
| Ammunition Segment | $18.7M | $- | - |
| Marketplace Segment | $12.3M | $- | - |
| Segment | Gross Margin | Cost of Revenues |
|---|---|---|
| Ammunition Segment | -4.0% | $19.4M |
| Marketplace Segment | 85.6% | $1.8M |
Interpretation: The gross margin in the ammunition segment was negative, which indicates inefficiencies in production and a sales mix shift. However, the marketplace segment maintained robust margins, showcasing the segment's profitability despite an overall revenue decline.
Comments from CEO Jared Smith
Jared Smith, AMMO's CEO, remarked on the company's progress in transforming their ammunition plant to higher margin rifle and pistol production. He highlighted that ammunition inventories are being built to accelerate sales in the upcoming fall season and mentioned efforts to enhance sales growth on GunBroker by developing a financing solution and optimizing cross-selling capabilities.
Dividends or Share Repurchase Program
AMMO repurchased approximately 580,000 shares of common stock in Q1 FY25, bringing the total shares repurchased under the plan to over 1.9 million since December 2022.
Forward Guidance
AMMO plans to streamline manufacturing processes to improve product throughput and marginality. Enhancement initiatives on GunBroker, including flexible financing options and cross-selling solutions, are also expected to drive future sales growth.
Stock Price Movement
Following the earnings release, AMMO's stock saw a positive change of 3.18%.
Conclusion: AMMO faced declines both in revenue and profitability for Q1 FY25. However, robust margins in the GunBroker marketplace segment and strategic steps to enhance ammunition production indicate a potential turnaround. The company remains proactive in repurchasing shares and optimizing its operations for future growth.
