Why Ammo Stock Is Plunging Today
Firearm marketplace and accessory supplier Ammo (NASDAQ: POWW) reported quarterly sales that came in below expectations and lowered full-year guidance. Investors were disappointed, sending shares down as much as 30% on Tuesday morning.
Ammo has two primary businesses. The company is the owner of GunBroker.com, an online marketplace for the shooting sport industry, and is also a manufacturer of ammunition and other firearm components.
In its fiscal second quarter ending Sept. 30, the company reported adjusted earnings of $0.05 per share, slightly ahead of the $0.04-per-share consensus, but revenue of $48.3 million was well below the $63 million Wall Street had expected. Net revenue fell 21% from the same three months of 2021, due in part to production restraints at its new manufacturing facility.
Source Fool.com
