POWW Earnings Prediction
The chart below shows how POWW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, POWW sees a +3.21% change in stock price 10 days leading up to the earnings, and a -11.40% change 10 days following the report. On the earnings day itself, the stock moves by -1.12%. This data can give you a slight idea of what to expect for the next quarter's release.
POWW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
30.95M
-9.64%
-23.42%
Gross Margin
20.70%
-33.61%
40.05%
Operating Margin
-31.20%
536.73%
104.72%
Net Margin
-22.81%
615.05%
72.93%
EPS
-0.07
-250.00%
40.00%
No Data Available
POWW Earnings Analysis
AMMO, Inc. Common Stock Corporation (POWW.O) Earnings Conference Call
Positive
AMMO, Inc. is focused on strategic product categories that contribute more to the bottom line, pulling back from low-margin segments, and building ammunition inventories to accelerate sales, particularly in the premium rifle hunting segments.
Sales strategy aligns with market trends, focusing on high-margin products to drive profitability.
GunBroker, the company's marketplace segment, increased its take rate by roughly 40 basis points from 5.8% to 6.2% in a year by implementing category fee changes, increasing advertising revenue, and launching Collector's Elite.
Demonstrates successful monetization strategy and growth potential in the marketplace segment.
AMMO, Inc. is transforming its marketplace, GunBroker, to be an innovative eCommerce leader by launching cross-selling options for accessories with firearms, improving algorithms for recommending products, and enabling buyers to purchase from multiple sellers in one transaction.
Positions the company for growth in the eCommerce industry with high barriers to entry and low market consolidation.
AMMO is making progress in transitioning its ammunition division to focus on higher-margin rifle production, streamlining operations, and implementing cost-cutting initiatives to enhance profitability.
Strategic shift towards high-margin products to improve financial performance and profitability.
Paul Kasowski, Chief Compliance & Transformation Officer, identified up to $15 million in cost-cutting and working capital opportunities to simplify the business model, improve cost visibility, and manage operating margins actively over the next 18 to 24 months.
Demonstrates a commitment to improving efficiency and profitability across the company.
AMMO, Inc.'s Q1 financial performance highlights a net working capital position of $134 million, including $50.8 million in cash and cash equivalents, indicating a strong financial position to support transformation efforts and future growth.
Strong financial position provides stability and support for ongoing strategic initiatives.
Negative
- Total revenues for the first quarter decreased to approximately $31 million from $34.3 million in the prior year quarter, primarily due to the current macroeconomic environment impacting the industry.
- Gross margin decreased to $9.8 million or 31.6% compared to $14 million or 40.9% in the previous year, with the Ammunition segment reporting negative gross margin.
- Non-recurring expenses of $6.3 million, including legal and professional fees, impacted adjusted EBITDA, which decreased to $2 million from $6.5 million in the prior quarter.
- Loss per share for the quarter was $0.07, compared to $0.02 in the previous quarter, reflecting a decrease in profitability.
- Cost of revenues increased to approximately $21.2 million, with the Ammunition segment reporting higher costs related to production inefficiencies and shift in sales mix.
