Fox Factory Q3 revenue falls 10%, misses estimates

By Reuters News


Overview

  • Performance shocks maker's fiscal Q3 revenue fell 10% yr/yr, missing analyst expectations

  • Adjusted EPS for fiscal Q3 beat analyst expectations

  • Company posted large net loss due to $121.3 mln loss on Marucci Sports divestiture


Outlook

  • Fox Factory sees Q4 net sales between $287 mln and $313 mln

  • Company expects Q4 adjusted EBITDA of $25 mln to $30 mln

  • Fox Factory narrows FY26 adjusted EBITDA outlook to $143 mln-$148 mln, excluding tariff refunds


Result Drivers

  • AFTERMARKET AND SPORTS WEAKNESS - Co said revenue fell due to declines in Aftermarket Applications and Specialty Sports Groups, citing limited chassis availability, macroeconomic pressures, and channel destocking in bike businesses

  • INPUT COST PRESSURES - Co said higher external input costs, including freight, commodities, and fuel, weighed on margins despite cost savings initiatives

  • MARUCCI DIVESTITURE IMPACT - Loss on Marucci Sports divestiture drove large net loss and reduced revenue contribution from Specialty Sports Group


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$338.41 mln

$342.30 mln (6 Analysts)

Q3 Adjusted EPS

Beat

$0.54

$0.35 (6 Analysts)

Q3 Loss Per Share

$2.61

Q3 Net Loss

$109.73 mln

Q3 Gross Profit

$106.58 mln

Q3 Income From Operations

-$98.62 mln

Q3 Pretax Loss

$108.19 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."

  • Wall Street's median 12-month price target for Fox Factory Holding Corp. is $18.50, about 6.5% above its November 4 closing price of $17.37

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 4 - Cooper Standard Q3 sales rise, slightly beat estimates

  • Nov 3 - Aptiv Q3 revenue rises on regional sales growth

  • Nov 5 - Aumovio warns of years of weak auto production despite earnings beat


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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