Alpine 4 Holdings says 2Q sales anticipated to climb 54% and top $14 million

Alpine 4 Holdings Inc (OTCQB:ALPP) said its Q2 2021 sales are estimated to rise by 54% year-over-year to total $14 million. 

Outlining its preliminary guidance for the second quarter, the company is also projecting the higher numbers to continue into 3Q 2021, where revenues could exceed $18 million. 

The diversified technology holding company has been busy this year advancing its portfolio of cutting-edge tech firms. Most recently, Alpine 4 announced that its subsidiaries, Impossible Aerospace Corporation and Vayu (US) Inc, were merging under the banner, Vayu Aerospace Corporation Inc. 

READ:Alpine 4 Holdings subsidiary Vayu Aerospace conducts successfully airframes demonstration for energy and mining customers

In a statement on the company’s 2Q performance, Kent B Wilson, Alpine 4 CEO, said: “This quarter’s success was led by A4 Manufacturing and its subsidiaries Quality Circuit Assembly, Inc. and Alternative Labs, LLC.   Both companies are firing on all cylinders, and further growth is expected for Q3 and Q4 due to the robust demand from their customer base. It is noteworthy that Alternative Labs, LLC. and Thermal Dynamics International Inc., were acquired one month after the quarter had begun. It is for this reason that one month of their revenue will not be reflected in Alpine’s Q2.”

Wilson went on to highlight the other factors that contributed to Alpine 4’s double-digit year-over-year revenue gain.

“Company-wide gross profit margin is also improving, with only A4 Construction Services lagging at the moment. The subsidiaries that constitute A4 Construction Services continue to face increased material shortages and costs, working against their profit margins.  We expect these margins to continue improving in Q3 and Q4 2021, normalizing in Q1 2022,” he said.

Late last week, Alpine 4 reported its Vayu Aerospace Corporation subsidiary had successfully demonstrated its G1 and US-1 airframes to several customers in the energy and mining industries.

At the time, Alpine 4, noted both the G1 and US-1 drones demonstrated superior flight time along with an agility to work in tight spaces, such as power lines, while covering a great distance between energy generation locations.

Wilson referenced the G1 and US-1 airframes in his preliminary quarterly results statement.

“Additionally, Q2 2021 brought increased spending on R&D for A4 Aerospace, Inc. and will continue for the near future as we build out our G1, G2, and US-1 airframes and avionics platforms,” Wilson said. “This continued investment into R&D is driven by our anticipation of sales beginning in Q3 and Q4.”

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Story by ProactiveInvestors