Fox Factory Q3 revenue falls 10%, misses estimates
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
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(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.)