Article – September 27, 2023
Fox Factory’s Recent Quarterly Earnings Reflect Slight Decline in Revenue
On Thursday, August 3rd, Fox Factory (NASDAQ: FOXF) announced its quarterly earnings results for the latest quarter. The company reported earnings per share (EPS) of $1.21, surpassing analysts’ consensus estimates by $0.07. Despite beating expectations, the company’s revenue experienced a minor decline compared to the same quarter last year.
During the quarter, Fox Factory generated $400.72 million in revenue, slightly below analysts’ projected revenue of $401.67 million. This decrease reflects a 1.5% decline compared to the corresponding period from the previous year when the company earned $1.38 EPS.
Although Fox Factory faced a decline in revenue, its net margin remained steady at 11.45%. Additionally, it demonstrated a commendable return on equity of 19.41%. These figures highlight the company’s ability to maintain profitability despite challenges in its top-line performance.
In terms of investor activity surrounding Fox Factory, various hedge funds and institutional investors have been actively buying and selling shares of the business recently. One notable example is OLD Mission Capital LLC, which acquired a new position in Fox Factory with an investment worth $25,000 during the fourth quarter.
Covestor Ltd also increased its stake in Fox Factory by 58.4% during the first quarter and now holds 358 shares valued at approximately $35,000 after adding an additional 132 shares to its portfolio.
BOKF NA made substantial investment moves as well by acquiring a new position in Fox Factory during the first quarter with an investment worth around $56,000.
Huntington National Bank notably grew its position in shares of Fox Factory by 45.7% during the second quarter and currently possesses 523 shares of the company’s stock valued at approximately $57,000.
Lastly, Pinebridge Investments L.P. entered the scene during the second quarter by acquiring a new stake in Fox Factory with an investment valued at approximately $63,000.
These recent investor activities reflect varying levels of interest and confidence in Fox Factory’s business prospects among hedge funds and institutional investors.
In conclusion, Fox Factory’s quarterly earnings report showcased impressive EPS figures, surpassing analysts’ expectations. However, the company experienced a slight decline in revenue compared to the same period last year. Notwithstanding this decrease, Fox Factory successfully maintained its net margin and demonstrated a robust return on equity. Hedge funds and institutional investors continue to show interest in Fox Factory through their recent buying and selling activities. As we move forward, market observers will keep a close watch on how Fox Factory responds to these challenges and leverages its profitability amidst changing industry dynamics.
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Fox Factory Holding Corp Faces Lower Earnings Forecast in Q3 2023 with Mixed Analyst Ratings
Fox Factory Holding Corp (NASDAQ: FOXF) has seen a reduction in the third-quarter 2023 earnings forecast by investment analysts at B. Riley, according to a research report released on September 26th. Analyst A. Glaessgen now predicts that the company’s earnings per share for the quarter will be $1.01, down from their previous estimate of $1.10. This adjusted forecast has led B. Riley to also revise its rating on the stock to a “Buy” with a price objective of $125.00.
The consensus estimate for Fox Factory’s full-year earnings is currently set at $5.03 per share. Furthermore, B. Riley has issued its estimates for the company’s fiscal year 2023 earnings at $4.60 EPS, Q3 2024 earnings at $1.44 EPS, Q4 2024 earnings at $1.59 EPS, and FY2024 earnings at $6.00 EPS.
Other research analysts have also recently weighed in on FOXF stock. StockNews.com began coverage on the company and assigned it a “hold” rating in their report published on August 17th. Bank of America, meanwhile, increased their price target on Fox Factory shares from $130 to $135 and maintained a “buy” rating in their report released on August 24th.
Stifel Nicolaus gave a vote of confidence to the stock by reaffirming its “buy” rating and setting a price objective of $130 in their research note published on September 18th.
Overall, Fox Factory currently has four hold ratings and five buy ratings assigned to it by various analysts in recent reports, making it a stock with a moderate buy recommendation according to Bloomberg.com data.
Several hedge funds and institutional investors have shown interest in Fox Factory as well recently through buying and selling its shares. For instance, OLD Mission Capital LLC bought new shares worth $25,000 in the fourth quarter. Covestor Ltd increased its stake by 58.4% during the first quarter and now owns 358 shares valued at $35,000. BOKF NA also purchased a new position worth about $56,000 in the first quarter. Huntington National Bank saw a 45.7% growth in their position during the second quarter to now own 523 shares worth $57,000. Lastly, Pinebridge Investments L.P. bought new shares valued at approximately $63,000 in the second quarter.
Fox Factory’s stock opened at $94.99 on Wednesday and has exhibited a one-year low of $73.05 and a one-year high of $127.54. The company has a market capitalization of $4.02 billion with a PE ratio of 21.74 and a price-to-earnings-growth ratio of 1.84, reflecting its stability among investors.
Furthermore, Fox Factory exhibits an intriguing debt-to-equity ratio of 0.27 along with current and quick ratios of 4.08 and 2.37 respectively.
In news related to insider trading activity, Paul Stecher, an insider at Fox Factory Holding Corp., recently sold 2,300 shares of the firm’s stock for an average price of $107 per share on August 25th, resulting in a total transaction value of $246,100.
Similarly, CEO Michael C Dennison sold 9,129 shares on August 10th for an average price per share of $114 which amounted to a total value close to $1 million dollars.
In conclusion, Fox Factory Holding Corp has received mixed reviews from investment analysts recently with B.Riley having revised its earnings estimate for the third-quarter downwardly as compared to previous forecasts.
Given the various ratings assigned by different research analysts ranging from hold to buy according to Bloomberg.com data,
it is indicative of the contradicting views about the stock, making it a moderate buy recommendation.
Note: The information provided in this article is accurate as of September 27, 2023.
