FOXF Earnings Prediction
The chart below shows how FOXF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FOXF sees a +2.55% change in stock price 10 days leading up to the earnings, and a -4.42% change 10 days following the report. On the earnings day itself, the stock moves by -1.01%. This data can give you a slight idea of what to expect for the next quarter's release.
FOXF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
352.84M
6.12%
-1.75%
Gross Margin
25.74%
-0.19%
-4.17%
Operating Margin
4.72%
39.64%
-18.20%
Net Margin
-0.05%
-104.10%
-103.76%
EPS
-0.00
-100.00%
-100.00%
No Data Available
FOXF Earnings Analysis
Fox Factory Holding Corp Corporation (FOXF.O) Earnings Conference Call
Positive
Financial Performance Alignment: In the fourth quarter, Fox Factory delivered on financial commitments with sales and adjusted earnings per share in line with guidance.
Cost Reduction and Debt Paydown: The company demonstrated progress in a $25 million cost reduction initiative and achieved $63 million of debt paydown during the fourth quarter.
EBITDA Margin Improvements: Both AAG and PVG showed sequential adjusted EBITDA margin improvements of 250 basis points and 310 basis points, respectively.
Working Capital Improvement: Working capital improved by $55 million year over year, indicating effective management of strategic priorities.
Facility Closure and Consolidation: The company completed the closure of its Colorado facility and initiated additional footprint consolidation, which is expected to drive benefits starting in Q2 2025.
Cost Optimization Savings: Fox Factory has identified $25 million in savings across COGS and SG&A as part of its cost optimization plan, with benefits beginning to materialize.
PVG Sales and EBITDA Growth: The Powered Vehicle Group (PVG) saw net sales of $116 million, up 5% sequentially from the third quarter, with adjusted EBITDA margin improving sequentially by 310 basis points.
Aftermarket Sales Growth: The aftermarket applications group (AAG) reported net sales of $112 million, up 11% sequentially, with adjusted EBITDA margin improving by 250 basis points.
Product Portfolio Expansion: The company is expanding its product portfolio, including new partnerships with OEMs like BMW, Ducati, and Triumph, which will help offset declines in other areas.
Aftermarket Business Resilience: Fox Factory's aftermarket business showed resilience, with strong sales in both domestic and international channels, indicating a trend of customers choosing to service and upgrade existing vehicles.
SSG Segment Sales Growth: The SSG segment reported net sales of $125 million, reflecting a $41.5 million increase from the Marucci acquisition, demonstrating successful integration and growth.
Operational Efficiency and Growth: Fox Factory is focused on operational efficiency and cost management to protect margins while continuing to win new partnerships and expand market presence.
Strategic Long-Term Investments: The company has made significant investments in R&D and sales and marketing, with a focus on long-term growth despite short-term challenges.
Negative
Profitability Decline Analysis: Net loss in Q4 2024 was $0.1 million, compared to net income of $4.1 million in Q4 2023, indicating a significant decline in profitability.
Q4 Adjusted Net Income Decline: Adjusted net income for Q4 2024 was $12.8 million, down from $20.3 million in the same quarter last year, reflecting a decrease in earnings per diluted share from $0.48 to $0.31.
Operating Expenses Increase: Total operating expenses increased to $90.6 million, or 25.7% of net sales, compared to $81 million, or 24.4% of net sales in the same quarter last year, indicating rising costs.
Sales Contraction Challenges: The company experienced a 23.5% contraction in AAG net sales and a 12% decrease in PVG net sales for the full year 2024, highlighting significant challenges in these segments.
EBITDA Margin Decline: Adjusted EBITDA margin decreased to 11.5% in Q4 2024 from 11.7% in Q4 2023, reflecting ongoing challenges faced by customers across various industries.
Inventory Increase Analysis: Inventory rose by $32.9 million, or 8.8%, compared to year-end 2023, driven by imbalances in expected versus fulfilled orders, indicating potential overstock issues.
Market Pressures Ahead: The company expects continued market pressures in 2025, with OEM customer environment remaining challenged, which may hinder growth prospects.
EBITDA Decline Analysis: The adjusted EBITDA for the full year 2024 was $167 million, down from $261 million in the prior year, indicating a decline in operational performance.
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FOXF Earning Call Sentiment
Fox Factory Holding Corp. (FOXF) Q4 2024 Earnings Conference Call Transcript
FOXF.O
-16.32%Positive
The earnings call reveals mixed signals: while there is growth in net sales and gross margin, net income and adjusted EBITDA have declined, indicating financial challenges. The Q&A highlights cautious optimism, with uncertainties around the MLB partnership and tariffs. Despite a positive outlook for Marucci and potential upside in the bike business, the overall guidance remains conservative. Given the company's market cap of approximately $2 billion, these factors suggest a neutral stock price movement over the next two weeks.
