AMMO Inc POWW shares are trading lower Tuesday after the company reported worse-than-expected top-line results and issued guidance below analyst estimates.
AMMO said fiscal second-quarter revenue decreased 21% year-over-year to $48.3 million, which missed average analyst estimates of $63.59 million, according to Benzinga Pro. The company reported quarterly earnings of 5 cents per share, which beat average estimates of 4 cents per share.
"Our new plant is running smoothly, and we are diligently working to bring it to its full operational production capacity, to meet commercial demand and satisfy the understandably stringent technical and timeline requirements set out by our US military partners," said Fred Wagenhals, chairman and CEO of AMMO.
"Additionally, we continue on our charted path to strategically and continually optimize the GunBroker.com Marketplace to ensure it fully addresses our customers' needs while leveraging that amazing platform to drive more revenue and increase earnings quarter over quarter."
AMMO cut its full-year revenue outlook to a range of $220 million to $240 million versus average estimates of $295.12 million.
Following the company's quarterly results, Roth Capital analyst Matt Koranda downgraded AMMO from Buy to Neutral and lowered the price target from $6 to $3.
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POWW Price Action: AMMO is making new 52-week lows on Tuesday.
The stock was down 32.8% at $2.11 at time of publication.
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