Please ensure Javascript is enabled for purposes of website accessibility

Why Ammo Stock Popped Today

By Rich Smith - Apr 7, 2021 at 4:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Surprise, surprise! It's another earnings preannouncement!

What happened

Shares of Ammo (POWW 2.46%) -- the little ammunition manufacturer that's made a habit of preannouncing strong sales long before they come out officially -- saw its stock rocket 12.5% as of 3:30 p.m. EDT Wednesday after, well, preannouncing strong sales long before they come out officially.

So what

Specifically, in only early April 2021, Ammo announced that when it wraps up results for its fiscal first quarter of 2022 on June 30, 2021, it will report quarterly revenue of $27 million. That's 178% year-over-year growth.  

As CEO Fred Wagenhals explained, "the refinement and expansion of our product offerings, coupled with our team's strategic capacity increase initiatives, continue to bolster AMMO's ability to address historical market demand, driving revenue as we strive to increase shareholder value." And that's giving him confidence that Q1's numbers will be strong.

Rising red stock arrow representing a stock going up drawn on a yellow background

Image source: Getty Images.

Now what

Is Wagenhals right about the Q1 numbers -- which, after all, won't be official for at least another two or three months? Maybe yes, maybe no. Luckily for investors, they won't necessarily have to wait till the quarter is officially over for their next bit of Ammo news.

"The Company will be updating guidance as the previously announced transaction comes into focus such that it has an impact on our first quarter results," advised Ammo -- guaranteeing that for the next few months at least, Ammo's stock price will continue to be driven by preannouncements of attractions yet to come, rather than by actual, official, and audited earnings news.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

AMMO, Inc. Stock Quote
AMMO, Inc.
$3.87 (2.46%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.