Fox Factory Holding (FOXF) Surpasses Earnings Estimates but Sees Year-over-Year Decline
Fox Factory Holding, Inc. (FOXF), a leading manufacturer and supplier of high-performance ride dynamics products, reported its fiscal 2023 first-quarter earnings on February 23, 2023. The company delivered earnings of $0.31 per share, outpacing the Zacks Consensus Estimate of $0.29 per share. Despite this positive news, FOXF’s earnings came in lower compared to the same quarter last year when the company reported earnings of $0.48 per share.
Financial Performance
The company’s revenue for the quarter was reported at $146.5 million, which was below the Zacks Consensus Estimate of $148.2 million. Gross profit margin for the quarter was 33.3%, down from 34.6% in the same period last year. Operating expenses increased by 11.5% year-over-year, contributing to a 1.3% decrease in operating income.
Segment Analysis
The Performance Products segment, which accounts for the majority of the company’s revenue, reported earnings of $0.22 per share, compared to $0.30 per share in the prior-year quarter. The Consumer Cyclical segment reported a loss of $0.01 per share, compared to a loss of $0.02 per share in the same quarter last year.
Impact on Shareholders
The earnings beat may provide some relief for FOXF shareholders, who have seen the stock price decline by approximately 25% over the past twelve months. However, the year-over-year decline in earnings and revenue may continue to raise concerns about the company’s ability to maintain profitability and grow in the current economic environment.
Impact on the World
The impact of FOXF’s earnings report on the broader market and the economy is likely to be minimal. The company’s earnings report may not significantly influence investor sentiment or market trends, as it primarily caters to the niche market of high-performance ride dynamics products. However, the company’s performance could serve as an indicator of the overall health of the consumer discretionary sector and the economy as a whole.
Conclusion
Fox Factory Holding’s first-quarter earnings report showed mixed results, with the company beating earnings estimates but reporting a decline in earnings and revenue year-over-year. The company’s Performance Products segment continued to contribute the majority of the revenue, but operating expenses and gross profit margin declined. Shareholders may find some relief in the earnings beat, but concerns about the company’s profitability and growth persist. The impact on the world is likely to be minimal, but the report could provide insight into the health of the consumer discretionary sector and the economy.
- Fox Factory Holding (FOXF) reported first-quarter earnings of $0.31 per share, surpassing the Zacks Consensus Estimate of $0.29 per share.
- Revenue for the quarter was reported at $146.5 million, below the Zacks Consensus Estimate of $148.2 million.
- Gross profit margin declined year-over-year to 33.3%.
- Operating expenses increased by 11.5% year-over-year.
- Performance Products segment reported earnings of $0.22 per share, down from $0.30 per share in the prior-year quarter.
- Consumer Cyclical segment reported a loss of $0.01 per share, compared to a loss of $0.02 per share in the same quarter last year.
- The impact on shareholders may be minimal, but concerns about the company’s profitability and growth persist.
- The impact on the world is likely to be minimal, but the report could provide insight into the health of the consumer discretionary sector and the economy.
