Fox Factory (NASDAQ:FOXF) Shares Gap Up on Earnings Beat

Fox Factory Holding Corp. (NASDAQ:FOXF) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $18.86, but opened at $21.23. Fox Factory shares last traded at $20.2270, with a volume of 194,951 shares traded.

The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.19. Fox Factory had a positive return on equity of 5.20% and a negative net margin of 20.25%.The business had revenue of $358.12 million during the quarter, compared to analysts’ expectations of $352.94 million. During the same quarter last year, the business posted $0.40 EPS. The firm’s revenue for the quarter was down 4.5% compared to the same quarter last year.

More Fox Factory News

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

• Positive Sentiment: Fox Factory reported second-quarter adjusted earnings of $0.37 per share, well above the $0.16-$0.18 analyst consensus, while revenue of $358.1 million exceeded estimates of approximately $352.9 million. Fox Factory second-quarter financial results
• Positive Sentiment: Management guided third-quarter revenue to $355 million-$380 million, above the roughly $345 million consensus estimate, signaling expected improvement despite seasonal and market challenges. Fox Factory third-quarter outlook
• Positive Sentiment: The company reaffirmed its goal of achieving $50 million in cost savings and outlined full-year 2026 revenue of approximately $1.42 billion-$1.47 billion. The focus on efficiency could support margins and earnings recovery. Fox Factory 2026 sales outlook
• Neutral Sentiment: Despite the earnings beat, quarterly revenue declined 4.5% year over year, and EPS fell from $0.40 in the comparable period. This indicates that the recovery remains dependent on stronger demand and successful cost controls. Fox Factory Q2 earnings beat
• Negative Sentiment: Fox Factory continues to report a negative net margin, while brokerages maintain a consensus “Hold” recommendation, suggesting analysts remain cautious about the company’s profitability and outlook. Fox Factory consensus recommendation

Wall Street Analyst Weigh In

FOXF has been the topic of a number of analyst reports. Roth Capital reiterated a “neutral” rating and set a $20.00 price objective on shares of Fox Factory in a research report on Friday, May 8th. Bank of America lowered Fox Factory from a “neutral” rating to an “underperform” rating and decreased their target price for the company from $24.00 to $20.00 in a research report on Tuesday, June 30th. Needham & Company LLC reaffirmed a “buy” rating on shares of Fox Factory in a research report on Wednesday, June 3rd. Weiss Ratings lowered Fox Factory from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, May 11th. Finally, Stifel Nicolaus set a $24.00 target price on Fox Factory in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $23.20.

Hedge Funds Weigh In On Fox Factory

Hedge funds and other institutional investors have recently modified their holdings of the stock. Western Standard LLC purchased a new stake in Fox Factory during the 4th quarter valued at about $2,053,000. Teachers Retirement System of The State of Kentucky raised its position in Fox Factory by 3,173.3% during the 4th quarter. Teachers Retirement System of The State of Kentucky now owns 388,666 shares of the company’s stock worth $6,650,000 after buying an additional 376,792 shares during the last quarter. RWWM Inc. lifted its stake in Fox Factory by 4.7% during the 1st quarter. RWWM Inc. now owns 5,533,072 shares of the company’s stock valued at $91,074,000 after acquiring an additional 247,635 shares during the period. Estuary Capital Management LP boosted its holdings in shares of Fox Factory by 15.3% in the 1st quarter. Estuary Capital Management LP now owns 1,815,271 shares of the company’s stock valued at $29,879,000 after acquiring an additional 240,512 shares during the last quarter. Finally, Engine Capital Management LP increased its stake in shares of Fox Factory by 162.3% in the first quarter. Engine Capital Management LP now owns 2,026,230 shares of the company’s stock worth $33,352,000 after acquiring an additional 1,253,808 shares during the period.

Fox Factory Trading Up 7.9%

The stock has a market cap of $853.78 million, a PE ratio of -2.82, a PEG ratio of 0.77 and a beta of 1.35. The company’s fifty day moving average is $18.03 and its 200-day moving average is $17.75. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.99 and a quick ratio of 1.52.

About Fox Factory

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.