Fox Factory (NASDAQ:FOXF) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• Fox Factory beat quarterly estimates: EPS was $0.37 versus the $0.18 consensus, while revenue reached $358.1 million, above expectations. However, revenue declined 4.5% year over year and profitability remained pressured.
• Management raised full-year revenue guidance to $1.42 billion–$1.47 billion and reported that its cost-reduction program had captured more than $25 million in savings toward a roughly $50 million 2026 goal.
• Growth remains uneven: Powersports revenue increased 22.5%, but higher material, freight, tariff and supply-chain costs continue to weigh on margins, while bike demand is expected to remain roughly flat. Analysts maintain a consensus “Hold” rating with an average price target of $21.

Fox Factory (NASDAQ:FOXF - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.37 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.19, Zacks reports. Fox Factory had a negative net margin of 20.39% and a positive return on equity of 5.39%. The company had revenue of $358.12 million during the quarter, compared to the consensus estimate of $352.94 million. During the same period in the previous year, the business earned $0.40 earnings per share. The firm's quarterly revenue was down 4.5% on a year-over-year basis.

Here are the key takeaways from Fox Factory's conference call:

• Raised full-year revenue guidance to $1.42 billion-$1.47 billion and narrowed adjusted EBITDA guidance to $176 million-$196 million, despite roughly $20 million of incremental input-cost inflation versus the original plan.
• The profit-optimization program remains on track, with more than $25 million of gross savings captured in the first half toward the approximately $50 million 2026 target; lower operating expenses and improved working capital also supported sequential margin expansion.
• Elevated steel and aluminum, freight, fuel, tariffs, and supply-chain costs continue to pressure profitability, while aluminum shortages affecting Ford F-150 production and Toyota production cuts constrained automotive-related volumes.
• Powersports revenue grew 22.5% year over year in the quarter, while new vehicle awards, including an autonomous EV program and expanded Live Valve applications, are expected to contribute meaningful volume beginning in late 2026 and into 2027-2028.
• Bike demand is stabilizing but management expects the business to be roughly flat year over year, while Marucci is relying on delayed bat launches, softball growth, and inventory cleanup to improve second-half performance.

Fox Factory Trading Up 12.0%

FOXF traded up $2.27 during midday trading on Friday, hitting $21.13. 1,981,673 shares of the company were exchanged, compared to its average volume of 499,787. The firm has a market capitalization of $886.19 million, a P/E ratio of -2.96, a P/E/G ratio of 0.74 and a beta of 1.35. The firm's 50 day moving average price is $18.09 and its 200-day moving average price is $17.78. The company has a quick ratio of 1.52, a current ratio of 2.99 and a debt-to-equity ratio of 1.00. Fox Factory has a 1-year low of $13.08 and a 1-year high of $30.75.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Roth Capital reissued a "neutral" rating and issued a $20.00 price objective on shares of Fox Factory in a research note on Friday, May 8th. Stifel Nicolaus set a $24.00 target price on Fox Factory in a research note on Thursday, April 16th. Zacks Research upgraded Fox Factory from a "strong sell" rating to a "hold" rating in a research note on Wednesday, June 3rd. Needham & Company LLC reissued a "buy" rating on shares of Fox Factory in a report on Wednesday, June 3rd. Finally, Fox Advisors set a $20.00 price objective on Fox Factory in a research report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $21.00.

Institutional Trading of Fox Factory

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FOXF. Invesco Ltd. lifted its position in shares of Fox Factory by 58.6% in the 4th quarter. Invesco Ltd. now owns 342,448 shares of the company's stock worth $5,859,000 after purchasing an additional 126,477 shares during the period. Veradace Capital Management LLC bought a new stake in Fox Factory during the fourth quarter valued at $287,000. State of Tennessee Department of Treasury grew its holdings in Fox Factory by 78.8% during the 4th quarter. State of Tennessee Department of Treasury now owns 23,472 shares of the company's stock worth $432,000 after acquiring an additional 10,345 shares during the period. Empowered Funds LLC acquired a new stake in Fox Factory during the 4th quarter worth about $3,285,000. Finally, VARCOV Co. bought a new position in shares of Fox Factory in the 4th quarter worth about $762,000.

Key Fox Factory News

Here are the key news stories impacting Fox Factory this week:

• Positive Sentiment: Fox Factory reported second-quarter fiscal 2026 adjusted earnings of $0.37 per share, well above the $0.16–$0.18 analyst consensus, while revenue of $358.1 million also surpassed estimates of approximately $352.9 million. Fox Factory Reports Second Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management projected third-quarter revenue of $355 million to $380 million, above the roughly $345.1 million consensus estimate, signaling expectations for sequential improvement. Fox Factory Third-Quarter Revenue Forecast
• Positive Sentiment: The company outlined 2026 sales expectations of approximately $1.42 billion to $1.47 billion and reaffirmed its goal of achieving $50 million in cost savings. The savings plan could support margins and profitability if successfully implemented. Fox Factory 2026 Sales Outlook and Cost Savings Goal
• Neutral Sentiment: Brokerages maintained a consensus “Hold” recommendation, suggesting analysts see a balanced risk-reward profile despite the earnings and guidance beats. Fox Factory Receives Consensus Hold Recommendation
• Negative Sentiment: Second-quarter revenue declined 4.5% year over year, and EPS fell from $0.40 in the prior-year period to $0.37. Fox Factory also reported a negative net margin, highlighting continued profitability pressure despite the quarterly beat. Fox Factory Beats Second-Quarter Earnings and Revenue Estimates

Fox Factory Company Profile

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company's FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.

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