Ammunition manufacturer Ammunition (NASDAQ: POWW) is a kind of strange duck in the investment world. Not because of his line of business – I have nothing against ammunition manufacturers – but because of the odd way he distributes his financial projections and actual financial results.
This first became apparent in January, when Ammo pre-announced a “500% increase” in sales for its fiscal 2021 third quarter (which ended December 31)…then followed that up with a prediction. from a 317% increase in sales for its fiscal fourth quarter… to finally release official fiscal third quarter results more than a month later.
Given the company’s penchant for releasing such messy directions and results, I guess we shouldn’t be too surprised to see it doing it again.
Specifically, on Tuesday morning — with nearly a month to go before its fiscal fourth quarter 2021 even ends, mind you — Ammo looked ahead and told investors what to expect for its upcoming fiscal year. Management says it expected revenue of $120 million for fiscal 2022, with “Adjusted EBITDA” of $20 million.
Both numbers would equate to triple-digit percentage growth, CEO Fred Wagenhals points out. The market accepted this news with enthusiasm – shares of Ammo were trading up 5% at noon EST.
Investors are therefore happy, but should they be? On the one hand, personally, I’d be more comfortable seeing how ammunition fared through the end of its fiscal year 2021 before thinking about fiscal year 2022. That being said, $120 million in sales next year would be triple the $40 million ammunition. generated in the last four quarters (officially reported).
This is an excellent growth rate. If Ammo can pull it off – and maybe turn a profit this time too? — Investors should be satisfied.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.
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